According to on-chain annotator Willy Woo, the toll of Bitcoin (BTC) could reach a "conservative" target of $200,000 in 2021. The prediction revolves around the fact that long-time investors seem more confident in the recent rally.

There are two cardinal information points that advise Bitcoin's ongoing rally could explode higher. First, "HODLers," or long-fourth dimension BTC holders, aren't moving their funds for longer than in previous rallies. Second, BTC held on exchanges continues to decrease, which reduces selling pressure.

A bullish Bitcoin re-accumulation phase is happening

The re-accumulation of Bitcoin has remained a consistently bullish trend throughout 2020. It has continuously decreased the selling pressure on BTC, allowing a more than stable rally without major thirty%-40% corrections as oft seen in 2017.

Woo noted that he is bullish for 2021 because Bitcoin's re-accumulation phase means the corporeality of BTC that could be sold is much lower compared to the previous bull cycle. He said:

"I've never been then bullish for 2021. This re-accumulation phase coincides with spot market inventory depletion roughly 2x longer and deeper than the concluding bicycle. Information technology will send BTC."

Atop the declining Bitcoin reserve on exchanges, Woo establish that HODLers are "holding stronger." In 2017, the amount of gain per the amount of capital invested in Bitcoin hovered at effectually $0.25. This figure increased to $0.35 in 2020, which means more than investors expect issue bigger profits in the time to come.

Bitcoin market cap gain per dollar invested. Source: Woobull.com

Based on the combination of the two optimistic on-chain trends, Woo said that Bitcoin could accomplish a  "conservative price" of $200,000 by the stop of 2021. He explained:

"My Top Model suggesting $200k per BTC by stop of 2021 looks bourgeois, $300k not out of the question. The current market on average paid $7456 for their coins. Yous all are geniuses."
Bitcoin HODL waves. Source: Glassnode, Unchained Capital letter

As reported in May, Bitcoin HODL wave data also supports the statement the HODLers from the 2017-2018 balderdash cycle aren't selling at these relatively high prices, including high-cyberspace worth individuals or "whales."

Notwithstanding, this data also suggests that some before HODLers from three to seven years ago are taking profit after a prolonged BTC rally, heightening the chances of a correction in the brusk term.

Woo called a massive BTC rally in March 2020

Equally Cointelegraph previously reported, Woo has been calling for an extended Bitcoin bull run since March 2020.

On Mar. iv, Woo told Max Keiser, the host of RT'due south Keiser Report, that Bitcoin could hit $135,000 in the bull run. He said at the time:

"You get could 35 times the cumulative average of the price — and that'due south actually picked every unmarried meridian in the ten-year history of Bitcoin — correct now that's sitting in a higher place $fifty,000, just it keeps climbing the longer it runs for."

Although the price of Bitcoin roughshod to sub-$4,000 on Mar. 12 in a "Black Thursday" crash that shocked the marketplace, information technology has swiftly recovered since.

The bull trend that was bound to happen in March earlier the crash appears to exist in total swing now following BTC'due south strong nine-month recovery.

But in the near term, analysts believe that the likelihood of the recovery in the U.Southward. dollar could cause Bitcoin to run into a minor pullback. Following the biggest iii-calendar week liquidation in the gilt market, analysts also run across the precious metal rebounding, which could stall BTC's momentum in the short term.