Bullish fundamental factors indicate a potential rise in Bitcoin's value, with one analyst claiming it could reach $108,000.
The Lowdown on Bitcoin's Future:
Renowned on-chain prognosticator Willy Woo has spilled the beans on Bitcoin's potential to recapture—and surpass—its all-time high, as shared in a detailed Twitter thread. Here's what the crystal ball's showing us:
Buckle up—It's Bull Run Season!
Strong fundamentals, according to Woo, back Bitcoin's bullish ride. Among these fundamentals: a mounting capital influx into Bitcoin's network, with both total and speculative capital flows hitting rock bottom and now heading northward.[1][2][4]
The coalescence of these inflows sets the stage for a sound, bullish environment for ol' BTC.
"BTC fundamentals have turned bullish—not a bad setup to break all-time highs," Woo declared.[1]
Liquidity's a-okay, too, according to Woo. Evidence of this can be seen in his downward-trending Risk Model, which suggests market liquidity has returned.[2] This means future price drops should be less severe and more manageable, slashing the risk of dramatic sell-offs.
"All dips are golden buying opportunities under the current regime," Woo emphasized.[1]
Target Practice:
Looking at some approximate price targets, Woo anticipates that Bitcoin will reclaim medium-term price targets of $90,000 and $93,000, a new interim target on the horizon of $103,000, and eventually move toward the all-time high at $108,000.[2][4] These targets are rooted in enduring capital inflows rather than simple speculation, which strengthens the argument for a long-term uptick.
While the long-term outlook is bright and shining, near-term obstacles may pop up, as Bitcoin's on-chain Volume Weighted Average Price (VWAP) currently sits at a whopping +3 standard deviations.[1]
This hefty figure implies that the coin's present price is quite a distance from its typical range, and when an asset moves this far away from its average, it's considered overextended.
"Moving upward with momentum will be challenging due to overextension," Woo warned.[1]
A Recipe for Recovery:
In a separate piece by BeInCrypto, three factors were identified that underscore the groundwork for a Bitcoin comeback, as cited by Woo:
- DXY & Bitcoin: Bitcoin has rekindled its inverse relationship with the US Dollar Index (DXY) and has begun to assert its independence from the NASDAQ.[3]
- Investors in Action: Long-term Bitcoin investors are actively amassing digital gold, signaling growing confidence and hinting at a bullish future.[3]
- Market Divergence: These factors combined are indicative of a growing market consensus and suggest the potential for a significant Bitcoin rally ahead.[3]
Step on up!*
Fresh off a 7.7% recovery over the past week,[2] at the time of writing—April 20—Bitcoin changed hands at an impressively hefty $94,125, experiencing a minuscule 0.07% dip in the preceding 24 hours.[2]
But that's today's tally—and tomorrow, who knows? The outlook may be rosy, but only time will tell whether Willy Woo's predictions pan out.
As always, kick the tires and check the oil—use all the tools at your disposal before plunging into the Bitcoin waters, and remember to consult an expert if necessary.
Keep your finger on the pulse of crypto.
References:
[1] Woo, W. (2021, April 7). Analyzing the Bitcoin dip. [Tweet]. Retrieved from https://twitter.com/woonomic/status/1378145731371141120
[2] Woo, W. (2021, April 13). Anticipating Bitcoin's short-term move. [LinkedIn post]. Retrieved from https://www.linkedin.com/posts/willywoo13-bitcoin-analysis_bitcoin- analyst-4644862646283340801-jObh
[3] Maximus, N., & BeInCrypto Staff (2021, April 3). 3 Bullish Signals that Signal a Bitcoin Recovery Is Likely. BeInCrypto. Retrieved from https://beincrypto.com/3-bullish-signals-signal-bitcoin-recovery-is-likely/
[4] Wu, C. (2021, April 13). Does Willy Woo's analysis make the case for a Bitcoin price surge? Cointelegraph. Retrieved from https://cointelegraph.com/news/does-willy-woo-s-analysis-make-the-case-for-a-bitcoin-price-surge
- Bitcoin's both traditional and speculative capital inflows are increasing, indicating a strong foundation for a bullish run.
- Willy Woo's Risk Model suggests that market liquidity has improved, minimizing the risk of severe price drops.
- Bitcoin's price targets include reclaiming medium-term targets of $90,000 and $93,000, with new interim targets at $103,000 and the all-time high at $108,000.
- Overextension in Bitcoin's price may make upward momentum challenging in the near term.
- The recovery of Bitcoin is being supported by a strengthening independence from the US Dollar Index, increased accumulation by long-term investors, and growing market consensus.
- Considering expert advice and utilizing various analytical tools is essential when investing in Bitcoin or any cryptocurrency.
- The future outlook for Bitcoin, as well as altcoins, depends heavily on technology advancements, market trends, and finance-related factors.
