Willy Woo, an on-chain Bitcoin analyst, writer and investor believes that Bitcoin is at the start of its next main bull run that will culminate in a price peak at the end of 2021.
On Nov. 11, Woo, the creator of a statistics resource known as Woobull produced fresh evidence that Bitcoin’s recent price gains were not at the peak yet, but just the beginning.
Green circle denotes where we are in this macro cycle. Start of the main bull run (in case it isn't already obvious).
BTC's on-chain Relative Strength Index is just warming up.
Red verticals are the halvenings, providing the bullish supply shock impulse. pic.twitter.com/HudOgAAezv
— Willy Woo (@woonomic) November 11, 2020
BTC’s On-Chain RSI is just warming up
Woo uploaded a chart on Twitter showing Bitcoin’s relative strength index (RSI) and marked the similarities between the current behavior of the asset and that of 2016. He explained that the green circles on the chart denoted where the market currently is in the macro cycle, and that it marks the start of the main bull run.
The RSI is a momentum oscillator that measures the speed and change of price movements. It is a technical indicator used to analyze financial markets by charting current and historical strengths and weaknesses of an asset or market based on the closing prices of a specified period. The calculation of RSI involves the ratio of average closes higher and lower over the specified period.
Woo used his own 365-day RSI chart whose readings follow from a previous update in July. At the July reading, Bitcoin was ending a period that was referred to as RSI compression that accompanied a series of higher lows and lower highs for the asset price.
365 day on-chain RSI (private chart not yet publicly available) shows the compression at the early phase of the bull cycle nearing completion, I'm expecting RSI expansion that typifies the main bull season run starting Q4 2020 into 2021. ("main bull phase" labeled in the chart) pic.twitter.com/sd4ALnNI2K
— Willy Woo (@woonomic) July 31, 2020
During that time, Woo had predicted that the bull run would begin in the fourth quarter of 2020 and run until 2021. This prediction has so far been correct and he now suggests that the new bullish phase that is ongoing will only top out in around a year’s time.
When Woo was asked if he thought the pick of the bull run would be in 2021 or 2022. He replied that he would go for December 2021.
Do you think a top in 2021 or 2022?
— B-🅡oots (@iambroots) November 11, 2020
Woo: 2021 is the year for breaking BTC price record
Woo is not the only one to claim that Bitcoin’s recent performance is a promise in a better future for the asset. Many participants in the market are pointing to there being a new all-time high for Bitcoin, which will be realized in 2021.
Real Vision CEO, Raoul Pal, and Tyler Winklevoss the cofounder of Gemini exchange have stated that a new all-time high for BTC will be seen no later than Q1 of 2021.
Although there were technical issues accompanied by the rise of price to $16,000, they have been dissipated by Bitcoin’s automatic mining difficulty readjustment. This has caused a nosedive in fees and a drop to pending transactions to near zero during the week.
Image courtesy of needpix