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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."
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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.
SOurce (https://cointelegraph.com/news/3-reasons-why-bitcoin-can-suddenly-explode-to-a-new-50k-65k-range)