Earlier this week, analyst Willy Woo released a new pricing model for Bitcoin (BTC). The model identifies the start of Bitcoin’s exponential bullish runs based on historical data. According to the model, Bitcoin may be only one month away from an official bull market.
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The price of Bitcoin was around $10,000 in February before the coronavirus pandemic drove the U.S. stock market into a sharp correction. At that time, analysts expected BTC to fall as the price had also rejected the $10,500, which is a fundamental resistance level.
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Surprisingly, the price of Bitcoin quickly dropped below $6,000, eventually falling to an annual low of $3,600 on BitMEX. This caused chaos in the crypto market, as more than $1 billion in leveraged positions were liquidated.
According to Woo, Bitcoin was positioned for a bull market before the coronavirus pandemic hit almost all risk markets. Woo’s new model, which accurately marked the beginning of four previous bullfights, indicates that Bitcoin is preparing for another short-term upward trend.
“This is a new model I’m working on, it chooses the start of exponential bull fights. 1) Bitcoin was preparing a rally until the white swan COVID killed the party. 2) This model suggests that we are close to another bullish run. We may be another month away.”
A new Bitcoin pricing model
If Bitcoin’s price remains stable any longer, Woo said it could strengthen the next breakout. Also, Bitcoin Up has shown a relatively low level of volatility for more than a month, defending the $9,000 support level.
The analyst also explained:
“The longer it takes to finish this bullish market, the higher the maximum price (Top Cap model) will be. A long band of lateral accumulation is ultimately a good thing.
A long period of consolidation under a multi-year resistance level, such as USD 10,500, is often considered a positive factor because it shows that buyers are trying to break through a key level, but there is not enough selling pressure to counteract it.