Bitcoin Price Model Hints Exponential Bull Run in a Month
Recently, on-chain analyst, Willy Woo, presented a new Bitcoin (BTC) price model. The model determines the beginning of exponential Bitcoin bull runs based on historical data. Based on the model, BTC might be a month away from an official bull market.
The price of Bitcoin lingered around $10,000 in February before the coronavirus outbreak dragged the U.S. stock market to correct sharply. During that time, analysts expected BTC to pull back as the price has also rejected at about $10,500 – a pivotal resistance level.
Unexpectedly, the price of Bitcoin declined too fast, as it fell under $6,000. As a result, it ultimately fell to a yearly low of $3,600 on BitMEX. With that, it caused mayhem in the crypto market as over $1 billion worth of leveraged positions were liquidated.
As Woo stated, Bitcoin positioned for a bull market before the coronavirus outbreak hurt almost every risk-on market. In the new model, Woo accurately marked the start of the last four bull runs. So, this means BTC is gearing up for another uptrend in the near-term.
Woo stated, “This is a new model I’m working on it picks the start of exponential bull runs.”
As he noted:
- Bitcoin was preparing for a bullish run until the COVID white swan killed the party.
- This model is suggesting that we are close to another bullish run.
If BTC’s price stayed stable for quite some time, the analyst explained that it might strengthen the following breakout. Also, Bitcoin has shown a relatively low level of volatility for more than a month. Thus, the model defends the $9,000 support level.
Woo said, “The longer this bull market takes to wind up, the higher the peak price (Top Cap Model). A long sideways accumulation band is ultimately a good thing.”
Most of the time, they consider a lengthy consolidation under a multi-year resistance level, like $10,500, a positive factor. This is because it reveals buyers are trying to breach a key level, but there is not enough selling pressure to combat it.
Bitcoin’s price since March has bounced back from the sub-$4,000 area without major corrections. At the same time, traders have defended major support levels at $5,800, $6,500, $8,100, and $8,600.
Nunya Bizniz, a cryptocurrency trader, stated that Bitcoin’s market structure stays intact despite the recent dips in the price trend of BTC. The analyst noted that the upward trend morphed into more of a sideways pattern. It also faced several drops lately. However, the market structure stays intact, and the series of higher lows has not been broken. The question now is if the pattern can further remain as it is now.
Above all, it is important to remember that, even with the current corrections, Bitcoin price is still in an uptrend, and it is moving sideways in a consolidation phase. In addition to that, this confluence of bullish macro factors and the resilience of key Bitcoin support levels increase the chances of a strong bull market in the medium to long-term.
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