- According to Willy Woo, Bitcoin has entered the zone of peak accumulation by large wallet investors.
- Asset managers have opened long positions worth $165 million in Bitcoin, signal the bullish outlook of institutions.
- Analysts project Bitcoin to hit an all-time high above $180,000 in the current bull market.
- The flippening becomes increasingly unlikely as Bitcoin rallies to $50,000 yet again.
As Bitcoin has broken above the $50,000 psychological barrier, buyers exercise optimism for significant gains at the end of the year.
Analysts expect spectacular gains at the end of year, as BTC bull-run resumes
According to Willy Woo, an influential on-chain analyst, Bitcoin’s bullish break above $50,000 has kicked in the second leg of the bull-run. Woo’s Bitcoin Supply Shock model is a measure of investor demand and supply. It indicates zones of peak accumulation that historically occur before a prolonged price rally.
When large wallet holders accumulate BTC and resist selling it for a prolonged time, a price rally is triggered by the “scarcity” of Bitcoin, given the demand remains the same. Based on the model, BTC has now entered the zone of peak accumulation by long-term holders.
The indicator plots the ratio of “coins that cannot be bought” (accumulated by holders) vs. “coins that can be bought” (available on exchanges). The amount of Bitcoin pulled out of circulation five months ago qualifies as “coins that cannot be bought” in the following chart.
Bitcoin Long Term Holder Supply Shock.
In addition to Woo’s supply shock model, the open interest associated with long positions on Chicago Mercantile Exchange (CME) has hit its highest level at $165.7 million. This implies that asset managers across institutions are bullish on the asset.
Compared to long positions, short positions sit at $74.1 million. This value is substantially low when compared to the peak of nearly $264 million noted ahead of the May 2021 bloodbath.
Given the bullish outlook of both institutional and retail traders, pseudonymous cryptocurrency analyst @Pentosh1 has predicted that BTC will hit a new all-time high above $180,000.
$BTC
Break above 50k = 58-60k to follow
Sitting above 200D MA which is now acting as supportWhat is your price discovery plan? Above those Highs 3x seems reasonable which is around 180k You don't go make new ath's for 10% gains
Verge of breaking out into that last range pic.twitter.com/hNAdwlzxa2
— Pentoshi Wont DM You (@Pentosh1) September 1, 2021