Although the price Bitcoin faced great difficulty in containing any rate movement, the largest cryptocurrency by market value will jump to $ 50,000 on the 24th of this month. This is what analyst Willie Wu defends.
After a long month of lateralization, Wu claims that the price of BTC will go high again. For him, the rally started yesterday (16) and will help boost BTC over the course of the week.
The reason for the analyst’s optimism is the issue of shares of the Grayscale fund. In other words, Grayscale will be able to sell bitcoins.
In addition, he also mentions the mining difficulty adjustment that happened this Sunday (18th). However, there is a problem that could refute the theory.
Is Bitcoin Coming?
According to Wu, these two factors will disrupt lateralization Bitcoin in a positive way.
“I expect the price to break out of a sideways downtrend next week and then rebound to between $ 50,000 and $ 60,000 before consolidating further,” Willie Wu said.
The analyst explains that Bitcoin is experiencing a “supply shock”. This is a period of shortage of units in circulation in the market.
A drop in liquidity, in turn, tends to have a positive effect on the price of an asset. As an example, he mentions that BTC had the same supply shock in 2017 when it hit $ 20,000.
In this scenario, Wu emphasizes that the rally culminates in a combination of supply shock and long-term accumulation behavior.
The big problem is the condition mentioned by the analyst: “If investors start dumping their bitcoins in the coming weeks, a bullish breakout could be compromised.”
And it looks like this is exactly what the data suggests.
Bitcoins destined for exchanges
Although Glassnode has published research that investors are withdrawing 2,000 BTC from exchanges daily, this move was recently canceled.
Whales contributed 36,031 BTC to Coinbase Pro, according to reported analyst Mr. Keith. Moreover, second In CryptoQuant, investors contributed 14,550.78 BTC to Binance.
Despite the fact that there are only two exchanges, this is a significant volume. When investors place bitcoins on exchanges, the movement is associated with an intent to sell.
Thus, the pressure from the sellers is likely to disprove the scenario predicted by Willie Wu.
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