Bitcoin (BTC) will boom in this new cycle to hit over $100K. That’s the prognostication of one on-chain analysis expert, Willy Woo. Woo recently sat down with Max Keiser to discuss things such as the current bull market, impact of May rewards halving and on-chain analysis.
What stood out most was his prediction that bitcoin is very likely to shatter $135, 000 in the current bull cycle.
Woo Sees Bitcoin (BTC) At $135,000 In The Near Future
Analyst Willy Woo was a guest on the Keiser Report show hosted by Max Keiser on March 3. Woo noted that he mostly does on-chain analysis which is made easy by the presence of a ledger that can be examined for capital flows. Analysis of this data then gives an idea of where the crypto markets are headed.
As per Woo, the bull market is back. However, he stated that his technical analysis only provides the direction of the market but not the price at which bitcoin will trade at. Nonetheless, he can utilize another model to predict a market top. For instance, “you could go 35 times the cumulative average of the price, and that’s actually picked every single top in the ten-year history of Bitcoin. And so right now I believe that’s sitting above $50,000, but it keeps climbing the longer it runs for”.
He explained that it is hard to accurately predict the price of bitcoin because the asset is time-dependent. In most cases, it is normally a four-year cycle based on the rewards halving. He analogized the effect of bitcoin halving that happens every four years to water sloshing in a bathtub.
Regarding where bitcoin is likely to go in the next 6 to 12 months, he opined:
“If you make a best guess, it’s above $100,000. I think one of the more common-sense predictions would be around $135,000 based on the timing cycleture and the 35x of average cap. So, I’m looking at around the $100,000 to $250,000 range depending on how long this bull market runs.”
Woo cited that a trend reversal for him would come only if the price falls to the $1000 range after which mining would be completely unprofitable.
He was also asked whether he thinks the hash rate preceded the price or the other way round.
Woo cited that this is essentially a chicken and egg scenario thus you can’t exactly tell which one comes first. “If the price goes up, the hash rate goes up. If hash rate goes down, then price also goes down,” he concluded.
Bitcoin’s Fundamental Stars Align
Notably, there are a number of fundamental factors that could push bitcoin higher in the near-term.
First, the Federal Reserve recently conducted an emergency rate cut to cushion the economy against the growing threat of coronavirus. Most crypto analysts believe the rate cut is super bullish for the bitcoin (BTC) price.
Secondly, the German Federal Financial Supervisory Authority (also known as BaFIN) recently classified cryptocurrencies as legal financial instruments. In other words, the regulator noted that cryptocurrencies are not issued by a central bank or linked to a currency that has been specified by the law, but people accept them as a medium of exchange.
This move is also in accordance with the country’s new anti-money laundering laws which require crypto custodial firms to obtain licenses from BaFIN. As of last month, more than 40 banks had applied for licenses with the regulator. All these developments suggest that the country’s regulators could formulate more laws in the future that allow crypto to flourish.
In the same vein, news surfaced today that the Supreme Court of India removed Reserve Bank of India’s (RBI) ban on cryptocurrency trading. This has been viewed as a positive signal because the over 1.3 billion people in India can now have unfettered access to crypto.
Bitcoin (BTC) is currently trading at $8,718.58 with 0.65% losses on a 24-hour adjusted timeframe. As analyst Dave the Wave quipped, this could well be the “turbulence before the take-off”. According to the charts that can be seen below, the analyst pointed out that the crypto markets are currently showing a similar pattern as in 2016, right before the BTC price erupted to $20,000.