Willy Woo considers that the price of the pioneering cryptocurrency has already established a floor. Big investors have taken advantage of the drop to buy more Bitcoin.
The Bitcoin crash in recent days could lead investors to panic but analyst Willy Woo is optimistic about upcoming weeks. He believes that the bullish cycle in the Bitcoin (BTC) market is still far from reaching its top.
Woo analyzed the recent behavior of Bitcoin in the market in his most recent newsletter. The renowned analyst described the pattern of Bitcoin accumulation of long-term investors. He said that there remains much of the year to see a peak in this bullish market.
The analyst estimates that, in the short term, Bitcoin should return to levels seen in previous weeks. He predicts that the pioneering cryptocurrency will again challenge the all-time high price above USD 61,000 per unit.
According to Woo, renowned for his Bitcoin analytics and metrics, the recent selling pressure led the cryptocurrency’s price to drop. He explained that it comes from new investors in the industry as “strong hands” hold their Bitcoin positions unchanged.
Those sales have caused a depreciation of Bitcoin while long-term investors take advantage to both save and buy BTC. Woo said that Bitcoin “is experiencing the strongest dip purchase of 2021, apparently by institutional and high net worth participants.”
Bitcoin is closer to a Bottom than to the Top
Woo said that Bitcoin’s all-time high of this bullish cycle is still a long way off. However, the researcher considers that its price floor will continue advancing to higher levels in the upcoming months.
This situation is happening, although Bitcoin is 14% above its price floor, about USD 44,700 per unit. The analyst explained in his newsletter that it all depends on capital flows from investors.
Besides, Woo stated that “the rate of capital entering the network increases while the price is decreasing.” He believes that this is a sign that the price floor for this cycle is approaching, “if it has not yet formed.”
Analysts Have a Bullish Vision for the Future
Woo’s positive outlook for the medium and long-term resonates with other analysts and metrics. For example, YouTuber and influencer Juan Rodríguez, @juanbiter analyzed the pattern of behavior in the price of Bitcoin in recent months.
The researcher said that this behavior is related to large settlements in the options market. This is one of the derivatives of the cryptocurrency that people are currently trading.
As the liquidation of these contracts approaches, the price remains sideways or downward to then rise by up to 30% in the following weeks. The pattern seems to have recently repeated itself amid the imminent liquidation of around USD 6,000 million in contracts.
After meeting the deadline, Bitcoin began to regain ground and is already close to USD 54,000, after dropping to USD 50,000.
The analyst has not anticipated specific terms or prices for the upcoming few weeks. However, he had already predicted USD 74,000 as a potential short-term price target in recent weeks.
Concerning the longer term, Willy Woo predicts a Bitcoin above USD 200,000. This coincides with forecasts by personalities such as Bobby Lee and predictive data from the stock-to-flow metric.
By Alexander Salazar
