Bitcoin Could Rise Above $300,000 This Year, According to On-Chain Analyst Willy Woo

Bitcoin bull and analyst Willy Woo is explaining why he believes the leading cryptocurrency’s bull run is just getting started.

In a new interview on the Unchained podcast with Laura Shin, Woo says that according to his Bitcoin Top Cap Model, the leading cryptocurrency is set to hit a six-figure price.

The Top Cap model is a price-prediction mechanism based on moving averages.

“Essentially the Top Cap model is a model that uses the theory of mean reversion. And in simple language, what that means is that it’s a theory that the price of an asset always reverts to the long-term average of the entire history of the data set…

We don’t know how it [Bitcoin] will trade through the next 12 months. But you can gauge it from historical sort of movements of Bitcoin price and make a guess of where the arc is going…

If we don’t arc upwards and we assume the top of the bull market is around December this year. Which, you know, it’s a fair estimate because all the bull market tops of the last two cycles have been around December, just before tax season. We’re going to go above $100,000 even if it doesn’t arc upwards. If we arc upwards and we’re up to $200,000 to $300,000… conservatively, I mean. Given the size of this rally, it’s going to push it higher.”

The on-chain analyst says this target could be achieved by December of this year. The flagship cryptocurrency would have to appreciate by about 700% before the end of 2021 to reach Woo’s upper price target.

Woo adds that the Bitcoin Top Cap model has worked throughout the decade-plus years that the oldest cryptocurrency has existed. He attributes the predictability to Bitcoin’s hard-coded characteristics.

“I do think maybe it’s because Bitcoin is a machine. It’s very mechanical, it’s set hardening. The set supply and the demand is relatively constant through the 12 years.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/kmls

Source link

The post Bitcoin Could Rise Above $300,000 This Year, According to On-Chain Analyst Willy Woo appeared first on Crypto new media.