Analyst Willy Woo highlights three on-chain indicators that track the flow of Bitcoin tokens across wallets, each illustrating why the benchmark cryptocurrency could explode higher.

A combination of multiple indicators tracking Bitcoin (BTC) blockchain would continue the benchmark cryptocurrency's price rally further into 2021, popular on-chain analyst Willy Woo anticipates.

In his recent newsletter, the market researcher wrote that he expects Bitcoin prices to reach the $50,000-$65,000 range in the coming sessions. His comments appeared as BTC/USD reclaimed its three-month high above $42,600 only days after crashing below $30,000, the pair's psychological support level.

"My expectation is similar to BTC at $20k all-time-high in January, where the price is pinned close to the $40k-$42k ceiling over a period of days (2 weeks maximum) wearing down sellers, followed by a faster move to $50k," said Woo.

"The next major consolidation band is $50k-$65k."

Bitcoin is rangebound between $30,000 and $40,000 since May 2021. Source:

BTC supply crunch

Bitcoin price rallied alongside supportive comments from Tesla's Elon Musk, Twitter's Jack Dorsey, and Ark Invest's Cathie Wood in July. The cryptocurrency also rose on rumors that global retail giant Amazon would start accepting it as payments, a claim that the company later refuted.

Meanwhile, Bitcoin's run-up to $42,600 also came right after Federal Reserve Chairman Jerome Powell admitted the possibility of interim inflationary shocks during a press conference last Wednesday. In detail, crypto bulls treat Bitcoin as their hedge against rising consumer prices.

What's noteworthy is that the period of Bitcoin's price recovery from under $30,000 coincided with an increasing liquid supply shock. Specifically, BTC was taken off exchanges, which, as Woo suggested, was due to strong holders locking them away for long-term investment.

Bitcoin liquid supply shock oscillator. Source: Willy Woo

"As of today, the Liquid Supply Shock metric is at a level which is consistent with a $55K price level," the analyst wrote on Aug. 1, pointing at the high deviation between the available supply and the current Bitcoin prices.

"Despite a powerful 44% rally in less than 2 weeks, we are still in a heavily discounted zone for BTC."

Miners return

China's ban on cryptocurrency activities in May played a crucial role in sending the Bitcoin prices lower this summer. The decision paralyzed the regional crypto mining industry that accounted for more than half of the global Bitcoin production.

Glassnode reported in June that miners either closed down their rigs to comply with the new law or shifted their operations outside China, thereby incurring additional costs to keep their production running.

The data analytics platform also noted that miners would likely liquidate a portion of their Bitcoin holdings to cover additional expenses. But, as it turned out, the miners' net BTC accumulation trend reversed in May, showcasing capitulation.

But as Woo noted, miners resumed Bitcoin accumulation in July. He cited the popular Bitcoin Hash Ribbon metric, which tracks the network's expansion and loss of hash rate, noting that it was recovering for the first time since the China ban.

Bitcoin hash ribbon vs. BTCUSD price action. Source: Willy Woo

"Ribbon recovery events spell the end of miners sell-off (which is what they do when they are driven out of business)," wrote Woo.

"Typically a recovery of the ribbon opens the way for a multi-month period of bullish price action. This indicator did a very good job of locating the price bottom."

Whale activity spikes

The past week has seen strong buying from whales, added Woo while pointing at Bitcoin's climb from $29,300 to over $42,600.

Whales typically represent entities that hold more than 1,000 BTC in their Bitcoin addresses. While they don't exclusively impact the market's directional bias, their buying in conjugation with relatively small Bitcoin investors points to a strongly bullish scenario.

The analyst noted that all investor cohorts—big or small—were buying Bitcoin for nine consecutive days, an even he has not witnessed in the cryptocurrency's lifetime.

Whale-led Bitcoin buying typically follows up with large price spikes. Source: Willy Woo

"The present buying by all cohorts is strongly bullish," said Woo. "When everyone is buying, who is the seller? The sellers are traders. The coins sold by traders reduce the speculative inventory on spot exchanges."

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu to flip Dogecoin as analysts see SHIB price rising to $0.01

Shiba Inu token emerged as the third most traded cryptocurrency in the past 24 hours after hitting a new all-time high. Experts have predicted that the memecoin will soon rank in the top 10 cryptocurrencies by market capitalization. 

More Shiba Inu News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets coil up for an explosive move

Bitcoin price has been due for a retracement after rallying for three straight weeks in October. This came on October 21, when BTC began a correction that is now holding up pretty well above a psychological barrier.

More Bitcoin News

Chainlink partners with AP while LINK price prepares for 50% advance

Chainlink price has been struggling for after May 19 crash and has stayed below a crucial barrier since then. However, LINK is turning around as it coils up to grapple with this hurdle and trigger a new upswing.

More Chainlink News

Ethereum heads toward ETH2 and Triple Halving with Altair upgrade on October 27

Following the launch of EIP-1559, the next key upgrade adds features to the beacon chain before the merge. The Altair beacon chain may be the only upgrade to the Ethereum network before transitioning from proof-of-work to proof-of-stake. Despite the drop in prices of most DeFi tokens, TVL crossed $100 billion last week.

More Ethereum News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast