Booming capital flow to Bitcoin will push its price to $ 63,000, predicts Willy Woo

Sandra Loyd

The well-known analyst Willy Woo announced in his newsletter on bitcoin (BTC) this Saturday, February 13, a new bullish consolidation of the price of the cryptocurrency, before a next break will take him to new highs.

Woo had previously stated that bitcoin’s floor price was $ 29,000, a fact reported by CryptoNews. Now, the analyst has raised that critical support level to $ 34,400 and notes that it is increasing rapidly, at a rate of $ 600 per day.

Regarding the incoming capital in investments in bitcoin, Woo shows that the data in-chain confirm that these flows are continue to maintain. For the analyst, it is very likely that part of these inflows come from the acquisition that Tesla had been making gradually, and which was known on February 8.

We have seen significant capital inflows And we now know that Tesla had amassed $ 1.5 billion. Bitcoin is making headlines in the mass media. The price set a new all-time high on February 8.

Willy Woo, trader and market analyst.

Indeed, as CriptoNoticias reported, last Monday, February 8, bitcoin reflected the largest increase in a single day, close to USD 8,500 . At dawn on Tuesday, the price of bitcoin set a new record above USD 48,000, and this Sunday, in figures from Messari, a new all-time high was recorded at USD 49,623.

The floor price of bitcoin increased from USD 29,000 to USD 34,400 . Source: Willy Woo.

Regarding the price expectation for the next few days, Woo said that given the consolidation that he warned below from the Fibonacci level of USD 47,000, advanced a price of USD 63,000, which corresponds to the next Fibonacci level.

More wholesale investors arrive to bitcoin

Through an analysis of the interactions between bitcoin addresses, by Glassnode, it is possible to determine the arrival of new users to the network in the last five weeks, says Woo.

The following graph shows the new entrants that arrive at Bitcoin.

The level of new entrants to the Bitcoin network is similar to that reached before the end of the 2017 bull cycle. Source: Willy Woo.

As can be seen in the graph, the current levels of new users occurred in 2017 in the middle of the bullish cycle of bitcoin, although before reaching the maximum.

The Bitcoin blockchain is receiving about 20,000 users per day, a dramatic increase of 3 times the normal flow, which is between 5,000 and 10,000 po users r day. These are most likely retail investors. These typically start to grow in the middle phases of bull markets.

Willy Woo, trader and market analyst.

A shock in the bitcoin supply

As institutional investment grows, and the respective BTCs move to cold wallets, the number of available currencies reflects an unprecedented drop , says Woo.

BTC in the hands of users who have shown willingness to sell. Source: Willy Woo.

The graph shows the BTC in the hands of users who have been willing to sell in the past. Those BTC, theoretically available in the market have decreased. Willy Woo estimates that these BTCs are 20% of the supply, roughly 4 million. “We can see how the shock of the supply has an effect on the price,” says Woo.

Finally, Woo refers to his bitcoin price models that have an upper curve that represents the highest limit that the quote can reach and a lower limit that is a multiple of the realized price. At the beginning of last December, Woo presented these models, commented on in an article by CriptoNoticias, that predict that the price of bitcoin will be between USD 200,000 and 300,000 at the end of this year.

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