New Bitcoin Price Model Points to “Exponential” Bull Run in a Month
New Bitcoin Price Model Suggests “Exponential” Bull Run in a Month
Earlier this week on-chain analyst Willy Woo released a new price model for Bitcoin (BTC). The model identifies the start of exponential Bitcoin bull runs based on historical price. The model points out that Bitcoin may be just a month away from an official bull market.
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The price of Bitcoin was hovering around $10,000 in February before the coronavirus pandemic led to the U.S. stock market to correct sharply. At that time, analysts expected BTC to pull back as the price had also rejected at $10,500 which is a crucial resistance level.
Interestingly, Bitcoin price dipped quickly as it fell below $6,000, ultimately dropping to a yearly low at $3,600 on BitMEX. This caused chaos in the crypto market as over $1 billion worth of leveraged positions were liquidated.
According to Woo, Bitcoin was positioned for a bull market before the coronavirus pandemic impacted almost all risk-on markets. Woo’s new model, which accurately marked the beginning of four previous bull runs, shows that Bitcoin is preparing for another uptrend in the near-term.
Woo said:
“This is a new model I’m working on, it picks the start of exponential bull runs. 1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party. 2) This model suggests we are close to another bullish run. Maybe another month to go.”
If the price of Bitcoin remains stable for longer, Woo said that it could strengthen the next breakout. Moreover, Bitcoin has shown a relatively low level of volatility for well over a month, securing the $9,000 support level.
The analyst went on to explain:
“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.”
A long period of consolidation under a multi-year resistance level such as $10,500 is often regarded as a positive factor because it shows buyers are trying to break a key level but there is not enough selling pressure to counter it.
Additional factors point to a bull run
Since March, the price of Bitcoin has recovered from the sub-$4,000 area without a major correction and along the way the traders have defended major support levels at $5,800, $6,500, $8,100, and $8,600.
Cryptocurrency trader Nunya Bizniz said the market structure of Bitcoin market remains intact despite recent dips in the price trend of BTC. The analyst stated:
“The upward trend has morphed into more of a sideways pattern and has experienced some dips lately. However, market structure remains intact. The series of higher lows has not been broken. Does this pattern continue to hold?”
It is important to keep in mind that despite the current corrections, Bitcoin price remains in an uptrend even as it moves sideways in a consolidation phase. This convergence of bullish macro factors and the resilience of key Bitcoin support levels strengthen the probability of a strong bull market in the medium to long term.
