The cycle maximum must be ratified via on-chain data, Woo says.
According to Willy Woo, 2021 is the year of “an explosive bull run” for bitcoin.
The well-known analyst Willy Woo, in an interview with Peter McCormack, updated the target of the maximum price of the current bullish cycle of bitcoin to USD 300,000, which he estimates will occur between December of this year and January 2022.
In the podcast What Bitcoin Did, last Monday 29, Woo also talked about your strategy for taking profit from your bitcoin position, once it is confirmed that the top of the cycle has occurred and a bearish cycle begins.
[Bitcoin] It will be in a range of USD 200,000 to USD 300,000, if you assume that the end of the cycle is in December. And now it looks like the trajectory is towards a low of $ 300,000 on the trajectory. So, you know it can go higher or lower a bit. It depends on how the price action oscillates for the rest of this year.
The analyst explains that many traders are quick to sell their BTC positions before peaking and recommends resort to on-chain metrics to ensure that indeed the maximum of the cycle has already passed. As an example of that strategy, he said that, in the bull cycle of 2017, confirmation that a bear cycle had started came at the beginning of January 2018.
That strategy of waiting to confirm the bear cycle before selling may not work for whales and other big holders, Woo warns.
If you are a whale and maybe a whale the size of Michael Saylor, maybe you have … maybe not even 100,000 BTC, but maybe you only have a paltry 10,000 BTC, you may have trouble selling down the market because the Liquidity begins to run out in bearish times. But for ordinary people who have, say, less than 1,000 BTC, I think there will be enough liquidity to get out of the bear market.
On the other hand, Woo claims that, at the present time, the price of BTC has bottomed out. He argues that capital flows to bitcoin registered a very particular pattern in recent days. “The flows entering the network reached a minimum and have started to accelerate as the price fell. Today we had the highest outflow, as bitcoin was picked up from exchanges and moved to cold storage, ”says the analyst.
I think we are at the bottom now. So right now, personally, I’m stacking my positions long, ”Woo told McCormack. Then he added: “You would have to be crazy to sell now.”
Woo, who warned about how misinterpretations of on-chain data caused the price to decline last February and mid-March, reiterated that bitcoin is still far from its maximum price. At the beginning of last December, Willy Woo presented his bitcoin pricing models, which allowed him, at the time, to anticipate a price of $ 200,000 for bitcoin later this year. That price target has been growing as he changed it to $ 250,000 and now sets it to $ 300,000.