While many analysts are comparing the performance of Bitcoin in the past three cycles, market analyst Willy Woo believes that the price of Bitcoin will no longer be below $ 20,000.
To Report Cryptopotito, Willie Woo states that the price of bitcoin is not going to fall below $ 20,000 again.
Comparing the data of the current bitcoin trend and the past jumps of this digital currency, it can be said that micro-investors have not yet entered the market, and yet the market is facing a liquidity crisis.
The price of Bitcoin has entered a strong upward trend since the last quarter of 2020. From September to the end of 2020, the Bitcoin price first hit the $ 20,000 mark for its first break, and then broke price records one after another.
There is little sign of a slowdown in the current uptrend, and Bitcoin is stabilizing above $ 30,000 after a slight correction over the past 24 hours. Yesterday, coinciding with the 12th anniversary of Bitcoin, the price of this digital currency went up to nearly $ 35,000.
Usually such fluctuations increase the excitement in the market. In the meantime, many analysts have expressed their views on the future of bitcoin. Willie Woo is one of them.
Emphasizing his uptrend, the leading analyst announced in a recent tweet that Bitcoin will no longer fall below $ 20,000. He believes that just one unexpected event, such as the outbreak of Covid-19 and the collapse of financial markets that we saw in March 2020, could cause the price of Bitcoin to fall below $ 20,000.
Comparison of 2013, 2017 and 2020 mutations
Another market analyst examines and compares the three main Bitcoin price jumps in 2013, 2017 and 2020. In his research, he specifically considers the relationship between bitcoin howling and price fluctuations.
According to him, the current cycle began about 150 days after the bitcoin move. He refers to each Hawing as an “inflation point” and says that in 2017, the price jump occurred 250 days after Howing, and in 2013, this jump occurred only 50 days after Howing.
Although the Bitcoin market value has crossed the $ 600 billion mark for the first time in history, the chart below shows that there is still a long way to go to reach the 2013 and 2017 record speeds.
In terms of volatility, the analyst notes that the current performance of Bitcoin is very similar to 2017, and this resemblance to 2013 is very small. “It simply came to our notice then.
So far, we have not experienced much downtrend.
According to many analysts, market investors have not yet entered the bitcoin market as they should. Google Trends data also shows that interest in bitcoin has increased significantly. The increase in Google searches for the word “bitcoin” usually indicates the interest of small investors in bitcoin.
An examination of the status of intra-chain addresses shows that in the upward jump of 2013, micro-investors were more active. This analyst writes about this:
The statistics are consistent with the hypothesis that micro-investors have not yet arrived. The current rise is controlled by a small portion of early Bitcoin institutional investors and the wealthy.
Recent data show that despite the currencies bought by institutional investors, lost and lost bitcoins, the currencies that the whales hold for a long time, and the miners’ unspent inventory, we are witnessing a liquidity crisis in the bitcoin market.
The analyst also points to bitcoins that are not on the market. These bitcoins are currencies that are not offered for sale in exchanges and markets and are kept in wallets for a long time. Referring to the rapid increase in this amount, he writes:
The number of bitcoins out of the market peaked earlier in the previous cycle and then slowly declined as currencies entered the market from cold wallets for sale. We have not yet reached the peak of liquidity, and the upward leap has not yet lost its power.