Bitcoin has been on an uptrend for over a month, and several analysts continue to make projections with regards to its price action. In a current interview, on-Chain analyst Willy Woo stated the opportunity of this bull market persevering with into 2022.
He said that his observation is largely based on demand and supply data, indicating an accumulation phase by investors. Information by CryptoQuant additionally indicated a resilient bull market primarily based on the present valuation cycle. After looking at historical data, Woo observed that accumulation by long-term holders would take another month or two to reach its peak.
Additionally, it will probably play out positively on the value within the upcoming months. Further, the CryptoQuant analysis supplemented Woo’s prediction that BTC was yet to reach its end-of-cycle top before the onset of a bear market. Woo predicted that the sturdy market can “peter out from December onwards.” Nevertheless, he additionally added,
“I think it’s a fair chance that we’ll not go into what we think which is a traditional Bitcoin bear market, which typically is a large retrace of possibly 80% of its worth…”
Woo predicted a less volatile, “mature” market in the future. A market that can help Bitcoin break out from “its four-year cycle.” He projected that Bitcoin would possibly discover its honest worth and will not replicate the value motion from the final three cycles. Instead, it could resemble a “drunken walk” without a large range rally and market fall.
A typical Bitcoin cycle typically consists of 4 phases: rally, correction, accumulation, and restoration. Woo predicted,
“I don’t think we’re going to have… these normal four-year cycles again. I’m calling this the ‘final cycle.’ “
Another aspect that extends the maturity of a market is the number of investors in the asset. It might probably consider to cut back high-range volatility. According to Woo, BTC is on its way to one billion users by 2025, equivalent to the number of internet users in 2005, based on “projected worldwide bitcoin users expressed in internet years.”
Nevertheless, one other hurdle within the widespread adoption of BTC is its worth. Bitcoin had a solid year, with April seeing a record high of over $64,800. At press time, BTC hovered over the $50,200 vary.
Does that make Bitcoin too expensive for new users?
Woo mentioned that the logical way to consider this was by looking at risk-reward indicators instead of its absolute price. Based on his evaluation, the Sharpe Ratio of BTC beat that of every other asset class within the final 4 years.
A recent Bloomberg report was also bullish on Bitcoin. As per the report, BTC would cross 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-cut year, which have usually been the highest performers.”
