Sometime in the past week, on-chain analyst Willy Woo unveiled a new price model for Bitcoin (BTC). According to the model, there is a start of exponential Bitcoin bull runs based on historical information and data. The analyst suggested that the flagship cryptocurrency may be just a month away from an official bull market.
Traders and analysts in the crypto space are still looking at Bitcoin hoping that a major move will come especially after the recent halving event.
Will A Bull Market Start This July?
In February the BTC price was hovering around the $10,000 level. That was the time before the coronavirus pandemic hit hard leading to the US stock market correcting steeply. At that time, analysts expected that Bitcoin would pull back since the price had also rejected the $10,500 zone. $10.5K is a pivotal resistance level for the Bitcoin market.
Interestingly, the BTC price dropped sharply even falling below $6,000 and eventually flirting with a yearly low of $3,600 at BitMEX. That massive plunge resulted in total chaos in the crypto market with over $1 billion worth of leveraged positions liquidated.
Based on Woo’s model, Bitcoin was positioned for a bull market before the Covid-19 health crisis affected almost all the risk-on markets. Woo’s new model accurately marked the start of four previous bull runs. It now indicates that Bitcoin is preparing for another uptrend in the near-term. He said:
“This is a new model I’m working on, it picks the start of exponential bull runs. 1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party. 2) This model suggests we are close to another bullish run. Maybe another month to go.”
If the Bitcoin price remains stable for longer, Woo believes that it could strengthen the next breakout. Additionally, Bitcoin has already shown a relatively low level of volatility in the past month defending the $9,000 support level strongly. The analyst further commented:
“The longer this bull market takes to wind up, the higher the peak price (Top Cap model). A long sideways accumulation band is ultimately a good thing.”
Any long period of consolidation under a multi-year resistance level such as $10,500 is majorly considered as a positive factor since it indicates that the buyers in the market are trying to breach a critical level but there does not exist adequate selling pressure to counter it.
More Factors Point To A Bull Run
Since the crash in March, the Bitcoin price has recovered majorly from the sub-$4,000 area without a major correction. Along the recovery road, the traders have defended major support levels located at $5,800, $6,500, $8,100, and $8,600.
A crypto trader, Nunya Bizniz, stated that the market structure of Bitcoin remains strong and intact despite the recent drops in the price trend of the crypto. The analyst commented:
“The upward trend has morphed into more of a sideways pattern and has experienced some dips lately. However, the market structure remains intact. The series of higher lows has not been broken. Does this pattern continue to hold?”
What many must keep in mind is that despite the current corrections taking place, Bitcoin price remains in a strong uptrend even as it oscillates in a consolidation phase. The confluence of bullish macro factors and the resilience of critical Bitcoin support levels raise the possibility of a major bull market in the medium to long-term.
For now, traders, commentators, and analysts are looking at the Bitcoin market awaiting its next price action. Most of them believe that a bull market is imminent but critics still say that Bitcoin will devalue to zero in the future.