According to network analyst Willie Wu, the price of Bitcoin (BTC) could reach a “conservative” target of $ 200,000 by 2021. The forecast is based on the fact that old investors appear to be safer in the recent rally.
There are two important points that Bitcoin’s continued rally can go up. First, holders of “HODLers” or BTC do not move their money any more than the previous groups. Second, BTC stocks continue to decline, which eases selling pressure.
The stage of bullish Bitcoin accumulation is coming
Bitcoin re-accumulation has been a sustained bullish trend throughout 2020. This has steadily eased selling pressure on Bitcoin, resulting in a more stable rally without major adjustments of 30-40%, as is often the case in 2017.
Wu indicated that he is optimistic in 2021 because the bitcoin re-accumulation phase means that the amount of Bitcoin that can be traded is much less compared to the previous bullish cycle. He said:
I have never been optimistic about 2021. This phase of the build-up coincides with the depletion of the spot market for about two times longer and deeper than it was in the previous cycle. Will send BTC. ”
In addition to declining bitcoin holdings on exchanges, Wu found HODLers to remain stronger. In 2017, the return on invested capital in Bitcoin was hovering around $ 0.25. This number rose to $ 0.35 in 2020, which means more investors are expecting more profits in the future.
Based on a combination of two optimistic trends for the chain, Wu said Bitcoin could reach a “conservative price” of $ 200,000 by the end of 2021. He explained:
“My best model, which is showing $ 200,000 in Bitcoin by the end of 2021, looks conservative. $ 300,000 is not at all out of the question. The current market has paid an average of $ 7,456 for its coins. You are all geniuses.”
Bitcoin HODL waves. Source: Glassnode, Unchained Capital
As reported in May, Bitcoin HODL wave data also confirms the argument that HODLers from the 2017-2018 bullish cycle are not selling at such relatively high prices, including individuals or whales.
However, the data also indicates that some previous HODLs three to seven years ago were profitable after a long spike in BTC, increasing the chances of a short-term correction.
Wu announced the massive BTC Rally in March 2020
As Cointelegraph previously reported, Wu has been advocating an extended bull campaign for Bitcoin since March 2020.
On March 4, Wu Max Keizer, host of RT Keizer’s report, announced that Bitcoin could rise to $ 135,000. He said:
“The average cumulative price could be 35x – and every peak in Bitcoin’s history was picked for ten years – right now it’s over $ 50,000, but it continues to grow the longer it runs.”
Although Bitcoin price fell below $ 4,000 on March 12 due to the collapse of Black Thursday that shook the market, it has recovered quickly since then.
The uptrend, which may have happened in March before the crash, appears to be in full swing now after a strong nine-month upturn in Bitcoin.
In the short term, however, analysts believe that the likelihood of the US dollar recovering could cause Bitcoin to see a smaller pullback. After the largest three-week settlement in the gold market, analysts are also seeing a drop in the price of precious metals, which could hamper Bitcoin’s rise in the short term.