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- Bitcoin supply shock metric indicates the price of the digital asset to be at least near $55k
- According to analysts in the cryptosphere, the on-chain stats appear considerably legitimately bullish for some time
- Analyst Willy Woo asserted while referring to the ratio of coins in cold storage, that one of the exchange supply shocks is now above ATH so no look-back is likely
Bitcoin is currently the largest cryptocurrency in terms of market cap as per CoinMarketCap. The cryptocurrency has seen tremendous growth before the mid-May crash tumbles the market. Although the crypto coin performed significantly, the price remained range-bound in recent months. Recently, it is observed that the supply shock metric indicates the price of the digital asset to be at least near $55k. Such a metric is a valuation model that transmits a distinct rationale to be long-term bullish on upward price movement. This weekend analyst Willy Woo emphasized that what he amplified is a prudent price estimation.
Supply shock valuation model joins Bitcoin price
Bitcoin is observed yet to be established at $50k as firm support. According to analysts in the cryptosphere, the on-chain stats appear considerably legitimately bullish for some time. Hence observing the outline, it seems the BTC price plays catch-up with stats.
On the other hand, the so-called supply shock valuation standard has enlisted the price. And the factor conveyed a heedful price estimation of $55k. Notably, the metrics are simply the unavailable Bitcoin supply divided by the current supply.
Supply Shock metrics is the magic wand of Willy Woo
Indeed, Willy Woo utilizes such metrics to assess the intent of investors before bids proceed to be placed. In a blog post last month, Woo illustrated that in the impression of demand and supply, an investor with no motive to sell is on the demand side while an investor who is willing to peddle is on the supply side.
The valuation standard additionally employs an algorithm to correlate compatible supply and demand situations to now. Hence, the factor helps produce a fair price estimation. Woo asserted while referring to the ratio of coins in cold storage, that one of the exchange supply shocks is now above ATH so no look-back is likely.
BTC surpassed its first hurdle for bulls
With the help of 2021, Bitcoin supply shock is an often-used phrase in the current market. Crypto miners now are unlocking just 6.25 coins per block. The prudent $55k minimum prey nonetheless continues above another set of monthly close minimums from analyst Plan B. Notably, Plan B guesses that September will have a minimum monthly close of $43k.
However, the uptrend resumes in earnest with BTC closing out this year on about $135k. At press time BTC has surpassed $52k, after continuing in a tight range throughout this weekend.
