Bitcoin has been on an uptrend for over a month, and several analysts continue to project its price action. In a recent interview, channel analyst Willy Woo declared the possibility of this bull market continuing into 2022.
He said his observation is largely based on supply and demand data, indicating a phase of accumulation by investors. CryptoQuant data also indicated a resilient bull market based on the current valuation cycle. After looking at historical data, Woo observed that accumulation by long-term holders would take another month or two to peak.
In addition, it would likely play positively on the price in the coming months. Additionally, CryptoQuant analysis completed Woo’s prediction that BTC had yet to hit its end-of-cycle high before the start of a bear market. Woo predicted that the strong market could “die out from December”. However, he also added,
“I think it’s a good chance that we won’t get into what we think is a traditional Bitcoin bear market, which is usually a huge retracement of maybe 80% of its value…”
Woo predicted a less volatile “mature” market going forward. A market that can help Bitcoin out of its “four year cycle”. He predicted that Bitcoin might find its fair value and not replicate the price action of the past three cycles. Instead, it might feel like a “drunken march” without a big rally and market crash.
A typical Bitcoin cycle typically consists of four phases: rally, correction, accumulation, and recovery. Woo predicts,
“I don’t think we’ll have… these normal four-year cycles again. I call this the “last cycle”. “
Another aspect that extends the maturity of a market is the number of investors in the asset. It can be taken into account to reduce volatility at high range. According to Woo, BTC is on track to reach one billion users by 2025, equivalent to the number of Internet users in 2005, based on “projected global bitcoin users expressed in Internet years” .
However, another obstacle to the widespread adoption of BTC is its price. Bitcoin had a strong year, with April posting a record high of over $ 64,800. At the time of going to press, BTC is above the $ 50,200 range.
Does this make Bitcoin too expensive for new users?
Courting noted that the logical way to look at this was to look at the risk-reward metrics instead of its absolute price. According to his analysis, BTC’s Sharpe ratio has exceeded that of any other asset class over the past four years.
A recent Bloomberg report was also bullish on Bitcoin. According to the report, BTC would break through the $ 100,000 mark with “least resistance” and,
“In addition to increasing demand and adoption, a key bullish Bitcoin guide is that 2021 is a post-supply reduction year, which has generally been the best performer.”
