Bitcoin has been trending up for more than a month, and various analysts continue to make projections regarding price action. In a recent interview, On-Chain analyst Willy Woo set the possibility that this bull market will continue into 2022.
He said his observation is largely based on supply and demand data, indicating a phase of accumulation on the part of investors. Data by CryptoQuant also indicated a resistant bull market based on the current valuation cycle. After looking at the historical data, Woo observed that long-term accumulation by holders would take another month or two to peak.
In addition, it is likely to positively influence the price in the coming months. Furthermore, the CryptoQuant analysis supplemented Woo’s prediction that BTC had not yet reached its end-of-cycle peak before the emergence of a bear market. Woo predicted that the strong market may “sell out from December.” However, also additional,
“I think it’s very likely that we won’t get into what we think is a traditional Bitcoin bear market, which is generally a big pullback of maybe 80% of its value …”
Woo predicted a less volatile “mature” market in the future. A market that can help Bitcoin break out of “its four-year cycle”. He projected that Bitcoin could find its fair value and not replicate the price action of the last three cycles. Instead, it could look like a “drunken ride” without a big range rally and market crash.
A typical Bitcoin cycle generally consists of four phases: rally, correction, accumulation, and recovery. Woo predicted,
“I don’t think we’re going to have … these normal four-year cycles again. I call this the ‘last cycle.’
Another aspect that lengthens the maturity of a market is the number of investors in the asset. It can influence to reduce high range volatility. According to Woo, BTC is on track to reach 1 billion users by 2025, equivalent to the number of Internet users in 2005, based on “projected worldwide bitcoin users expressed in Internet years.”
However, another hurdle in the widespread adoption of BTC is its price. Bitcoin had a solid year, and April posted a record high of over $ 64,800. At press time, BTC was hovering around the $ 50,200 range.
Does that make Bitcoin too expensive for new users?
Court mentioned that the logical way to look at this was by looking at risk-reward indicators rather than their absolute price. According to their analysis, BTC’s Sharpe index outperformed any other asset class in the past four years.
A recent Bloomberg report was bullish on Bitcoin as well. According to the report, BTC would cross the $ 100,000 mark with the “least resistance” and,
“In addition to increasing demand and adoption, a key bullish guide for Bitcoin is that 2021 is a year after the supply cut, which has generally performed the best.”
This is a machine translation of our English version.
Your opinion is important to us!