BTC has broken through another important resistance range: according to Willy Woo, on-chain analyst, $100,000 is an easily reachable target
The price of Bitcoin (BTC) has broken through the resistance range of $21,000-$22,000 and reached a new All-Time High at $23,000 on 17 December. Meanwhile, on-chain analyst Willy Woo argues that $100,000 is a „ridiculously low“ target.
Weekly BTC/USD pair chart (Bitstamp). Source: Tradingview
Breaking above $21,000 was particularly important for Bitcoin so it could continue its short-term rally. Exchange heatmaps showed a wall of sell orders at around $21,000 to $21,500, which BTC’s price had to break through to sustain a broader bullish trend.
The Bitcoin Top Cap model frames $100,000 as a conservative target. Source: Woobull.com
Bitcoin enters price discovery phase
Exchange heatmaps show no visible resistance levels and areas with large sell orders above $22,000. This means that, in the short term, the probability of BTC continuing its rally is high.
Due to the optimistic market sentiment and the sales slump, Woo said BTC’s Top Cap Model considers $100,000 to be a „ridiculously low target“:
„We are not at the peak where the BTC Top Cap Model starts to curve upwards. Let’s see where it will go in 2021. $100,000 is a ridiculously low target according to the current trajectory. $55,000 is the next benchmark -> Bitcoin becomes a $1 trillion macro asset.“
Woo cited $55,000 as the next benchmark for Bitcoin, as it would mean the cryptocurrency would have reached 10% of gold’s market cap, currently estimated at around $9 trillion. Above $50,000, Bitcoin would begin to nibble away at a relatively large portion of the gold market cap, which remains the dominant asset in the safe haven space.
Order books and volume trends also show that traders have been moving their sell orders higher, expecting Bitcoin to rise to $30,000 after the $20,000 mark was finally breached yesterday.
If futures, options and spot markets continue to do well in the coming days, the probability of BTC reaching $30,000 as the first local top remains high.
Options markets show big institutions remain bullish
According to Deribit Insights, a subsidiary Bitcoin Compass of the largest crypto options exchange that focuses on research and data analysis, institutional funds remain bullish on Bitcoin.
In the options market, call options represent buy orders while put options refer to sell orders. Thus, when buyers of call spreads increase, it suggests that experts predict an even bigger rally for Bitcoin.
On Twitter, Deribit Insights claims that its parent company has identified large buyers of call spreads, which is indicative of a bullish trend.
However, a threat to Bitcoin in the near future could be whale influx. Data from CryptoQuant suggests that whale deposits on exchanges have risen to levels not seen since March 2020:
$BTC: median inflow (calculated at the end of the day) on all exchanges reached the highest levels in nine months. Such figures have not been seen since the huge sell-off in March.
Considering that Bitcoin has grown despite the increase in whale deposits and given that we are still in the early stages of institutional buying, BTC could still have a sustainable rally towards $30,000.
Translated with www.DeepL.com/Translator (free version)