2021 will be the year of “crazy bullishness” for Bitcoin as the current price rally enters its final explosive phase. This is what blockchain analyst Willy Woo appreciates.
This year we are on the verge of witnessing the “last explosive bull run” of the ongoing three-year Bitcoin (BTC) price rally, argues well-known on-chain analyst Willy Woo during the latest episode of the “What Bitcoin Did” podcast.
“You’d be crazy to sell now. There are more purchases than ever before, a new record for 2021 and we know the person buying the dip is Rick Astley and he won’t let us down. “
In his terminology, “Rick Astley” is an archetype of a long-term trader who continually buys Bitcoin and almost never sells it – literally “never giving up” his BTC. And according to Woo, in general, nobody should sell their coins today because the BTC price is currently at its newly discovered low.
“I think we’re down now,” said Woo – and: “So yes, I’m personally accumulating my long positions right now.”
As evidence, he referred to how many users buy Bitcoins on the Coinbase crypto exchange – followed by massive outflows of BTC from the platform into wallets. Woo comments:
“Maybe an unregistered institution is buying, maybe it’s a private hedge fund, or many of them. But there are certainly a lot of purchases from Coinbase that tend to be US institutions. “
The last explosive bull run
He explained that the current bull run is completely different compared to previous Bitcoin price cycles – thanks to various new entrants who have entered the crypto market in recent years, particularly institutional companies like MicroStrategy and Tesla.
Woo also says that there has only been a bear market for a year recently – and today the crypto industry is experiencing another bull market that typically lasts around three years.
During the first part of a bull run, the “accumulation floor” can last anywhere from three to nine months. Then follows an early phase in which “everything pumps, everyone is excited, and then everything dies a little bit”.
“And then we have the actual, mainly bull phase, which is usually played through in a year. 2017 was the last, 2013 was the one before. And 2021 is the main bull phase of the bull market. The last explosive bull run, this one year of the three years of bullishness, is now taking place, so the crazy bullishness. “
However, he admits that while a so-called “super cycle” could happen (an extremely long period of abnormally strong demand growth), it is also possible that “we could crash severely”.
Cathie Wood, CEO of asset management company Ark Invest, argues that Bitcoin’s market cap of over $ 1 trillion is just the beginning of cryptocurrency pricing.
Proof of text: Cryptoslate