Bitcoin (BTC) is going to start its next “main bull run” and the price peak won’t hit until the end of 2021, well-known analyst Willy Woo says.
In a recent Twitter discussions on Nov. 11, the creator of statistics resource Woobull produced fresh evidence that Bitcoin’s price gains are only just starting.
Woo: Bitcoin RSI “just warming up”
According to charts showing Bitcoin’s relative strength index (RSI), Woo noted similarities between the metric’s behavior now and that of early 2017.
“Green circle denotes where we are in this macro cycle. Start of the main bull run (in case it isn’t already obvious),” he said.
“BTC’s on-chain Relative Strength Index is just warming up. Red verticals are the halvenings, providing the bullish supply shock impulse.”
RSI looks at price behavior over a particular time period. Its calculation involves the ratio of average closes higher and lower over that period.
Woo was using his own 365-day RSI chart, and its readings follow on from its position during a previous update in July. At the time, BTC was ending a period of so-called RSI compression, which accompanied a series of higher lows and lower highs for its price.
At the time, Woo called for the bull run to start either in Q4 or Q1 next year, something which then took place. Now, he believes that the new bullish phase will only top out in around a year’s time.
“My pick is December 2021, gotta sell to pay taxes like last time,” he responded when asked about a possible Bitcoin price peak.
2021 to be year of Bitcoin price records
As previously reported, Woo is not the only one claiming that Bitcoin’s performance in recent weeks is an anomaly, which will later correct downward.
Real Vision CEO Raoul Pal and Gemini exchange co-founder Tyler Winklevoss have both said that a new all-time high for BTC/USD will come no later than Q1 next year.
The technical issues which accompanied the surge to $16,000 have meanwhile dissipated thanks to Bitcoin’s automatic mining difficulty readjustment, with fees nosediving and unconfirmed transactions falling to near zero this week.
A further downward readjustment, estimated at 6%, is due in around four days’ time.