Willy Woo said that bitcoin would soon reach $ 74,000 amid the most considerable supply shock in its history.
As BTC is in short supply from exchanges, more and more now reaches the hodlers hands. Few want to divest an asset with a market valuation of $ 1 trillion.
The price of bitcoin (BTC) will soon hit $ 74,000, predicts statistician Willy Woo in his latest analysis of the cryptocurrency pioneer.
6% of the crypto asset’s market capitalization remains in user portfolios. Capital then flows continuously to show a more robust demand. Therefore, it finds good fundamentals to determine that the uptrend will continue in the coming weeks.
Woo adds that bitcoin is facing the biggest supply shock in its history, and it will soon break the resistance of $ 63,000 by climbing to $ 74,000. The analyst states that BTC will end the year around $ 250,000 as previously noted; Instead, because of the consolidation, its maximum target now centers around $ 300,000.
For the past three weeks, large BTC streams have been pouring out of exchanges, which for Woo means that institutional investors are purchasing the cryptocurrency at a more significant and faster rate. This flow is even stronger than January purchases.
Two prominent investors recently received BTC. One of them was a Chinese company that focused on developing artificial intelligence for mobile applications, which invested USD 40 million in BTC.
The other is the Norwegian company Aker, which incorporated a cryptocurrency-focused company called Seetee. Through this new subsidiary, it made an investment of USD 58 million in bitcoin. Given this, Woo suspects that other institutions and individuals will soon appear that prefer cold storage rather than leaving their funds on exchanges.
Bitcoin, an Asset with a Market Valuation of 1 Trillion Dollars
Woo sees another sign stating that the price of BTC will continue its rise due to the plentiful supply and supportive shock that bitcoin is receiving. The support band explained that it appeared due to the substantial purchases reported during the last three weeks.
The analyst explained that 6% of the available offer reached a value of 1 trillion dollars, creating a permanent consolidation to BTC as an asset that now has a more substantial valuation.
Given that 16% of the available supply went to new wallets with a price range between USD 46,000 and 58,000, there is reason enough to suspect that the cryptocurrency price will no longer return below those levels.
Another reason that bitcoin will never be that cheap again relates to the bullish streak that the cryptocurrency went through in 2017. In 2016, bitcoin was scarce in the exchanges. At that time, the depletion endured five months and was the prelude to the high peak that the asset reached the year after.
Now the inventory of BTC on spot exchanges has been running low for 13 months. That’s what Woo defines as the most extensive supply shock the cryptocurrency has experienced in its 12-year history. For this reason, he believes that the current bullish streak will not stop in the short term.
By: Jenson Nuñez
