Bitcoin bull and analyst Willy Woo is explaining why he believes the leading cryptocurrency’s bull run is just getting started.
In a new interview on the Unchained podcast with Laura Shin, Woo says that according to his Bitcoin Top Cap Model, the leading cryptocurrency is set to hit a six-figure price.
The Top Cap model is a price-prediction mechanism based on moving averages.
“Essentially the Top Cap model is a model that uses the theory of mean reversion. And in simple language, what that means is that it’s a theory that the price of an asset always reverts to the long-term average of the entire history of the data set…
We don’t know how it [Bitcoin] will trade through the next 12 months. But you can gauge it from historical sort of movements of Bitcoin price and make a guess of where the arc is going…
If we don’t arc upwards and we assume the top of the bull market is around December this year. Which, you know, it’s a fair estimate because all the bull market tops of the last two cycles have been around December, just before tax season. We’re going to go above $100,000 even if it doesn’t arc upwards. If we arc upwards and we’re up to $200,000 to $300,000… conservatively, I mean. Given the size of this rally, it’s going to push it higher.”
The on-chain analyst says this target could be achieved by December of this year. The flagship cryptocurrency would have to appreciate by about 700% before the end of 2021 to reach Woo’s upper price target.
Woo adds that the Bitcoin Top Cap model has worked throughout the decade-plus years that the oldest cryptocurrency has existed. He attributes the predictability to Bitcoin’s hard-coded characteristics.
“I do think maybe it’s because Bitcoin is a machine. It’s very mechanical, it’s set hardening. The set supply and the demand is relatively constant through the 12 years.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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