The Bitcoin price (BTC) has surpassed the $21,000–$22,000 resistance range to rise above a new high of $23,000 on Dec. 17. Meanwhile, on-chain analyst Willy Woo now says $100,000 is a “ridiculously low” target.
The $21,000 level was particularly important for Bitcoin to continue its rally in the near term. Exchange heatmaps showed stacked sell orders at around $21,000 to $21,500, which meant BTC price had to break through to see a broader uptrend.
Bitcoin enters price discovery
Exchange heatmaps show no visible resistance levels and areas with large sell orders above $22,000. In the short term, this means the probability of BTC continuing its rally is high.
Due to the optimistic market sentiment and the sell-side crisis, Woo said the BTC Top Cap Model shows $100,000 is a “ridiculously low target.” He said:
“We are not at the all-time-high juncture where the BTC Top Cap Model starts curving upwards. Let’s see how high she runs in 2021. $100k is a ridiculously low target at the current trajectory. $55k is the next landmark -> Bitcoin becomes a $1T macro asset bucket.”
Woo emphasized $55,000 as the milestone price for Bitcoin because it would mean BTC would have hit 10% of gold’s market cap.
Currently, gold’s valuation is estimated to be around $9 trillion. Above $50,000, Bitcoin would begin eating up a relatively large portion of the market cap of gold, which remains the dominant safe-haven asset.
Exchange order books and volume trends also show that traders have moved their sell orders higher, expecting Bitcoin to rise to $30,000 after $20,000 was finally breached yesterday.
If the momentum of the futures, options and spot markets gets sustained throughout the upcoming days, the probability of BTC hitting $30,000 as the first local top remains high.