Bitcoin to Climb to $53,200 to Address Market Imbalance: Willy Woo
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On Sunday, popular on-chain analyst Willy Woo tweeted that the Bitcoin (BTC) price could climb higher because of the current “demand/supply imbalance in the market,” noting that:
“#Bitcoin price would need to move to $53k to address the demand/supply imbalance in the market.”
Woo asserted that his fair value for the benchmark cryptocurrency is $53,200 based on fundamental factors. However, the prominent analyst highlighted that “fundamentals do not predict short term price, but given enough time price discovery reverts to fundamentals.”
Another prominent analyst, Will Clemente, agreed with Woo’s assertions, referring to a tweet he posted on July 31 where he noted that based on liquidity data from Glassnode, BTC should trade around $53,000.
In a blog post published on December 29, 2020, the CTO of Glassnode, Rafael Schultze-Kraft, discussed the quantification of Bitcoin liquidity, starting that “if many bitcoins are illiquid, a supply-side crisis emerges – which has a weakening effect on BTC’s selling pressure in the market,” adding that “a sustained rise of illiquid bitcoins is an indication of strong investor HODLing sentiment and a [potentially] bullish signal.”
To quantify BTC liquidity, Glassnode utilizes the concept of “entities” or “individuals or institutions that control a set of addresses in the Bitcoin network.” The on-chain analytics platform uses “the ratio of the cumulative outflows and cumulative inflows over the entity’s lifespan” to ascertain a Bitcoin entity’s liquidity.
Key Bitcoin Levels to Watch — August 8
After an explosively bullish start to August, the primary cryptocurrency has recorded a new twelve-week high at $45,390 on Sunday. However, BTC has since suffered a ship below the $45k resistance, most likely because of the 200 SMA technical level on our daily chart.
That said, a close above this technical point over the coming hours could help Bitcoin approach and break higher barriers. However, failure to clear the $45k level by bulls could open the doors for BTC to touch the $41k pivot line.
Meanwhile, our resistance levels are at $45,000, $46,000, and $47,000, and our key support levels are at $43,000, $42,000, and $41,000.
Total Market Capitalization: $1.79 trillion
Bitcoin Market Capitalization: $826.2 billion
Bitcoin Dominance: 46.2%
Market Rank: #1
