Bitcoin would have to return to $ 50,000 this coming week, says Woo.
The accumulation and stability of prices maintain the bullish north for bitcoin.
The fall in the price of bitcoin (BTC) last Tuesday, September 7, could be nothing more than a “bear trap,” according to markets and metrics analyst Willy Woo.
In his most recent newsletter for subscribers, published this Saturday, September 11, Woo assured that “this region of retreat is a bear trap and the large-scale movement is to the upside.”
In trading, a “bear trap” is a time when an asset shows performance that could go through an uptrend reversal. It is considered a “trap” because it moves investors to take positions to the downside, expecting a bigger drop that does not end up happening. On the other hand, there are also “bull traps” when an upward move appears to reverse a downtrend.
The researcher concluded that we are facing a bear trap considering that, “given that the supply and demand data are strongly bullish, the bullish possibilities are limited.”
Woo added that this week’s price drop was caused by traders’ leverage that led to cascading position closings. The downturn did not occur from an investor sell-off (a common bearish signal). “Rather, investors are accumulating a lot and they are the ones who control the price in the long term,” he explained.
The analyst, known for his metrics and markedly bullish bias relative to bitcoin, reiterated in this new report something that both he and various research firms have been saying for weeks: long-term investors are permanently hoarding BTC waiting for new all-time highs.
This behavior, combined with the price stability he referred to last week, led him to conclude that the market crash of a few days ago is not sustainable in the medium and long term. “We saw this exact price action take place on the top floor of $ 30,000,” he claimed.
Bitcoin will retake $ 60,000 and go for more
In the short term, the newsletter states that this coming week the main cryptocurrency should return to $ 50,000. According to Woo, this would occur “once the accumulation is complete” of this stage.
In the long term, he expects a new strong bull run towards the end of this year, although it could even extend to 2022. Already in his previous report, he even pointed out that BTC would soon return to $ 60,000.
As CriptoNoticias reviewed, Woo hopes that this movement to $ 60,000 precedes search for new all-time highs and break with the cap of just over $ 64,000 in force so far.
In previous predictions, he has come to talk about bitcoin passing 100,000 and up to $ 200,000 during this bull cycle. In particular, he anticipates it for the end of this and the beginning of next year, as suggested by other analysts’ models.
For those forecasts to come true, the cryptocurrency would have to rise more than 100% in the coming months. At the time of writing, the CriptoNoticias price calculator shows that its market value on exchanges is around $ 45,000 and $ 46,000.