On-chain analyst: The exchange’s Bitcoin reserves are reduced, and the Bitcoin is bullish to $200,000
According to on-chain analyst Willy Woo, the price of Bitcoin (BTC) may reach the “conservative” target of $200,000 in 2021. The basis for this prediction is that long-term investors seem more confident in the recent rebound.
There are two key figures that indicate that Bitcoin may continue to explode. First, “coin hoarders” (that is, people who hold Bitcoin for a long time) have held Bitcoin for longer than before. Second, Bitcoin holdings on exchanges continue to decrease, which reduces selling pressure.
Entering Bitcoin re-accumulation phase
The re-accumulation of Bitcoin has maintained a bullish trend throughout 2020. It continued to reduce the selling pressure of Bitcoin, enabling Bitcoin to achieve a more stable rebound without the 30%-40% sharp correction that often occurred in 2017.
Woo pointed out that he is bullish for 2021 because the re-accumulation phase of bitcoin means that the number of bitcoins that can be sold is much smaller compared to the previous bull market cycle. He said:
“I have never been so optimistic about 2021. This re-accumulation phase coincides with the depletion of spot market inventories, and the time and depth are approximately twice the previous cycle. Exchanges will lose Bitcoin.”
While the exchange’s bitcoin reserves declined, Woo found that hoarders were more “firmly holding”. In 2017, the gain for every dollar invested in Bitcoin was around $0.25. This number increased to $0.35 in 2020, which means that more investors expect greater profits in the future.
Based on the combination of these two optimistic on-chain trends, Woo stated that by the end of 2021, the “conservative price” of Bitcoin will reach $200,000. He explained:
“My top model shows that by the end of 2021 each Bitcoin will rise to $200,000. It looks conservative, and $300,000 is not impossible. The current market average holding cost is $7,456. You are all geniuses.”
As reported in May, data from the Bitcoin HODL wave also supports the view that hoarders (including high net worth individuals and “whales”) in the 2017-2018 bull market cycle did not pay relatively high prices Sell bitcoins.
However, this data also shows that after Bitcoin’s long-term rise, some hoarders from 3 to 7 years ago are making a profit exit, which increases the possibility of Bitcoin’s short-term correction.
Woo claims Bitcoin will surge in March 2020
As previously reported by Cointelegraph, Woo has been claiming that the Bitcoin bull market is coming since March 2020.
On March 4, Woo told Max Keiser, the host of “RT’s Keiser Report” that Bitcoin may reach $135,000 in the next bull market. He said at the time:
“The price you get may be 35 times the cumulative average price-this is actually the price of every highest point in Bitcoin’s ten-year history-now it has exceeded $50,000, but the longer it lasts, the price The higher.”
Although the price of Bitcoin fell below $4,000 in the “Black Thursday” crash on March 12, which shocked the market, it has since rebounded quickly.
After Bitcoin has experienced a strong recovery for 9 months, the bull market trend that should have occurred before the March crash now seems to be in full swing.
But in the short term, analysts believe that the possibility of a recovery in the US dollar may lead to a slight correction in Bitcoin. After the gold market has experienced the largest three-week liquidation, analysts expect precious metals to also rebound, which may hinder Bitcoin’s upward momentum in the short term.
