Willy Woo says Bitcoin could reach $200,000 by 2021 because older investors are more confident about the current rebound.
According to on-chain analyst Willy Woo, the price of Bitcoin (BTC) could reach a „conservative“ target of $200,000 in 2021. The prediction revolves around the fact that older investors seem more confident in the recent upturn.
There are two key data points that suggest the ongoing Crypto Trader recovery could explode higher. First, „HODLers,“ or long-time BTC holders, aren’t moving their funds any longer than in previous rallies. Second, the BTC held in the exchanges continues to decline, which reduces selling pressure.
A phase of bullish accumulation of Bitcoin is taking place
The accumulation of Bitcoin has remained a constant upward trend throughout 2020. The selling pressure on BTC has continuously decreased, allowing a more stable rebound without major corrections of 30% to 40%, as was often seen in 2017.
Willy Woo: Bitcoin reaching $200,000 in December 2021 is now ‚conservative
Woo said he’s optimistic for 2021 because the accumulation phase of Bitcoin means that the amount of BTC that could be sold is much lower compared to the previous upward cycle. He said:
„I’ve never been so optimistic for 2021. This accumulation phase coincides with the depletion of spot market inventory approximately 2 times longer and deeper than the last cycle. It will send BTC.
On top of the declining Bitcoin stock in the exchanges, Woo discovered that the HODLers are staying stronger. In 2017, the amount of profit for the amount of capital invested in Bitcoin was around $0.25. This figure increased to $0.35 in 2020, which means more investors expect higher returns in the future.
Bitcoin Market Cap Gain per Dollar Invested
Bitcoin’s ‚Hodl Wave‘ data indicates a rising trend
Based on the combination of the two optimistic on-chain trends, Woo said Bitcoin could achieve a „conservative price“ of $200,000 by the end of 2021. He explained:
„My top model suggesting $200k for BTC by the end of 2021 looks conservative, $300k is not out of the question. The current market paid an average of USD 7456 for its currencies. You are all geniuses.