- Willy Woo’s prediction of BTC price is based on Liquidity Shock levels
- Other predictions for the alpha crytpo
YEREVAN (CoinChapter.com) – Bitcoin(BTC) could reach $55,000 from the current $38,574 in the Tuesday session due to supply shock metrics, says Willy Woo, a Bitcoin analyst, and researcher with an extensive following. In his regular newsletter on Bitcoin price action, the analyst based his prediction on a supply shock model.
Liquidity supply shock
In hindsight, liquidity supply is the number of coins available for trading liquidity pools. Liquidity supply shock occurs when the liquidity decreases due to supply cuts or the increased number of wallets HODLing the asset. In addition, large holders (whales) are locking their coins away for long-term investment, thus taking them out of liquidity pools.
The HODLing behavior creates an imbalance between supply and demand. The latter rises together with the bullish price action, which partially stems from the supply cut. In Mr. Woo’s view, the vicious cycle prevents the market from pricing the alpha crypto at an adequate level. “The market is still far away from pricing BTC correctly,” stated the analyst.
He provided a graph indicating the supply shock in April 2021. The shock level is at a metric consistent with the $55,000 value.
Mr. Woo also provided data from the liquidity oscillator, which indicates the current low level of liquidity on the Bitcoin market. The upper blue graph indicates the price, while the purple bottom section shows the liquidity supply level, which is critically low.
Also read: Bitcoin price taps $42,000 amid strong accumulation trend, will BTC hit $50,474 next?
The analyst’s prediction puts the expected price at $55,000, a 42 percent increase from the current value. As of the moment, the largest cryptocurrency by market cap has decreased by 2.4 percent in the past 24 hours. The digital asset hit a significant support/resistance bar at the $38,600-39,380 range. The upcoming sessions will show if BTC manages to regain confidence and offer more green candles.
Also read: Eleven cryptocurrency exchanges in South Korea to shut down amid regulatory pressure.
Other predictions for Bitcoin
Many analysts and experts share their opinion on the future price action of the flagship cryptocurrency. Some expert investors, like Warren Buffet, the CEO of Berkshire Hathaway, are outspoken critics of Bitcoin, calling it a “slump” and a “scheme.” However, other experts predict a bright future, pinpointing price levels as high as $470,000 by 2030.
A survey conducted by the British Finder financial platform combined the opinions of 42 crypto experts worldwide and put the BTC price estimation at $66,284 by January 2022. The panel also predicted that Bitcoin could overtake USD as the dominant currency worldwide by the year 2050.
On the other hand, Daniel Polotsky, the founder of crypto ATM operator CoinFlip, sees Ethereum as the dominant crypto by the end of 2021, citing the latter’s extended functionality compared to Bitcoin.
Also read: Bitcoin week ahead Ep14: Focus shifts to Ethereum’s major hard fork event.
