Crypto News

Bitcoin is priced at $ 23,000 because the on-chain analyst says $ 55,000 is the "subsequent milestone."

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Bitcoin price (BTC) has passed the resistance range of $ 21,000-22,000 and is above a new high of $ 23,000 on December 17th. On-chain analyst Willy Woo now says $ 100,000 is a "ridiculously low" target.

BTC / USD weekly chart (Bitstamp). Source: trade view

The $ 21,000 level was particularly important for Bitcoin to continue its rally in the short term. Exchange heatmaps showed stacked sell orders between $ 21,000 and $ 21,500, meaning BTC price had to break through to see a broader uptrend.

The Bitcoin Top Cap model sets $ 100,000 as a conservative target. Source: Woobull.com

Bitcoin goes into pricing

Exchange heatmaps show no visible resistance levels and areas with large sell orders above $ 22,000. In the short term, this means the likelihood that BTC will continue its rally is high.

Given the bullish market sentiment and sell-side crisis, Woo said the BTC top cap model shows that $ 100,000 is a "ridiculously low target." He said:

“We are not at an all-time high where the BTC Top Cap model curves upwards. Let's see how high it will be in 2021. $ 100,000 is a ridiculously low target on the current trajectory. $ 55k is the next milestone -> Bitcoin will become a $ 1T macro asset bucket. "

Woo highlighted $ 55,000 as the milestone price for Bitcoin, as it would mean BTC would have reached 10% of gold's market cap.

Gold is currently valued at around $ 9 trillion. Starting at $ 50,000, Bitcoin would devour a relatively large portion of the market capitalization of gold, which is still the dominant safe haven asset.

Bitcoin order book and heat map. Source: material indicators

Exchange order books and volume trends also show that traders have moved their sell orders up and expect Bitcoin to rise to $ 30,000 after finally hurting $ 20,000 yesterday.

If the momentum in the futures, options and spot markets continues in the coming days, the chances remain high that BTC will be the first local top to hit $ 30,000.

Options market data shows that institutions remain optimistic

Institutional funds remain bullish on Bitcoin, according to Deribit Insights, the research arm of the largest cryptocurrency options exchange.

In the options market, call options represent buy orders and put options represent sell orders. So if call spread buyers rise, it shows that expectations of a bigger Bitcoin rally are rising.

Deribit Insights said the exchange saw large buyers of call spreads, indicating a bullish bias. They said:

“Institutional funds seem to remain optimistic. Big buyers of call spreads (20-24,000 popular before 20,000 broke). Today Jan + Feb 22k calls both bought x250. Jan 30k x500 is shown as a purchase. Near calls profit, some roll through January + February, hold exposure. ATM 19.5–20,000 puts sold – bullish bias. "

For the foreseeable future, however, there is a threat to Bitcoin in whale tributaries. Data from CryptoQuant suggests that whale populations on the stock exchanges have risen to levels not seen since March 2020.

$ BTC All Exchanges Inflow Mean (end of day) hit the nine-month high since the big sell-off in March.

View diagram https://t.co/kLek1Plpuo pic.twitter.com/kgff0fdW06

– CryptoQuant.com (@cryptoquant_com) December 17, 2020

Given that Bitcoin has risen despite increasing whale populations, BTC can still see a sustained rally towards $ 30,000 as institutional purchases are only gradually gaining traction.

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Melinda Martin