05.08.202117:13 Forex Analysis & Reviews: Bitcoin: Optimistic forecast from an on-chain analyst

Well-known on-chain crypto analyst Willy Woo said that market volatility will soon intensify and may push the bitcoin price up to a new all-time high. It should be noted that most of his early forecasts have been worked out, so this review is worth taking a closer look at.

Woo noted that the period of inactivity of bitcoin has reached the bottom. He expects the next bullish cycle to be more aggressive.

On Sunday, he shared a graph showing strong and upbeat fundamentals for online user growth. It has increased parabolic along with the price of bitcoin since 2010, showing structural signs of a bear market. Wu argues that the squeeze we have seen in the past few weeks was the result of supply shock divergence and resulted in a breakout between July 17 and 24.

He also noted that the eight consecutive days from July 21 to 28 were very special from the point of view of the network, as they indicated a large volume of purchases, with both whales and small market participants buying. In an interview on the same day, the analyst explained the reasons why he predicts an impending bullish cycle using a simplified glassnode chart depicting bitcoin's past and current market activity.

He noted the long-term growth in exchange stocks, as more retail investors now resort to help and trust exchanges to store their digital coins. He also shared a similar ETF chart showing a growing trend for institutional investors who collect coins and invest in funds like Grayscale. The amount of bitcoins stored in whale wallets has been declining, signaling an increase in decentralization, which he says is good for the main cryptocurrency.

Woo says you shouldn't dwell on the short-term outlook of cryptocurrencies. Investors should look at the long term.

In December, the analyst predicted that bitcoin is likely to reach $200,000 or $300,000 by the end of 2021. Then he stated that he had never been so optimistic about this asset before. But we still have six months, and time will tell whether such a bold forecast will come true or not.

Meanwhile, the local technical picture looks vague. Bitcoin continues to fight for the last weak bastion of hope for a return to growth. The level of 38,610.88, marked with a red dotted line, is being traded. The bullish engulfing did not please for long and did not justify itself - the short growth of the trading session on Wednesday was completely lost. But it's not over yet. Maybe they will buy out the fall, leaving a long false breakout hairpin. One can only guess, but this does not, in any way, reduce the local uncertainty and does not cancel the two scenarios for BTC/USD, marked on the chart.