Several Bitcoin on Chain analysts see a supply shock coming for Bitcoin. But is a surge to $380,000 in 2021 really possible, as popular crypto-strategist "Bitcoin Jack" believes?
Three on-chain experts remain bullish
Bitcoin may currently be at a crossroads between rise and fall - but several on-chain analysts see evidence of a bullish breakout in Bitcoin: Willy Woo, Will Clemente and Jack Sparrow aka "Bitcoin Jack".
Willy Woo, for example, expects a potential supply shock in the Bitcoin market as long-term HODLers (i.e. long-term holders) snatch Bitcoins from short-term buyers. Background: By buying and storing the coins, long-term holders are removed from the circulating Bitcoin supply. This means that there are fewer Bitcoin in circulation. Woo explains why this is relevant and what consequences it has already had in the past:
"It reminds me of the supply shock that went unnoticed by the market in the fourth quarter of 2020."
"The price went through the roof afterwards."
So, despite bearish-looking charts, is Bitcoin (to buy at eToro or Libertex) on the verge of a price explosion? On-chain analyst Will Clemente sees it similarly to Woo. According to Clemente, too, the number one cryptocurrency by market capitalisation is on the verge of a so-called supply shock. Citing on-chain statistics, he says: Bitcoin is currently being intensively accumulated, which is why fewer and fewer BTC are available. At the same time, Bitcoin whales would buy more and more BTC. This could illustrate the conviction of large market participants in the cryptocurrency's short-term prospects - and trigger a rise that the majority of industry participants do not expect.
Bitcoin Jack names massive price target
A massively bullish forecast is also made by "Bitcoin Jack". Considered one of the most accurate analysts in the crypto industry, last year he predicted Bitcoin's V-shaped recovery to $19,000 after the pandemic-induced crash.
Now Bitcoin Jack says: He is positioning himself for the possibility of a Bitcoin rise to $380,000 (!). This sounds incredible, but the analyst explains:
If this $BTC cycle ends up with similar returns in a similar amount of time as the previous cycle, this is literally what the chart could look like Perspective matters, people recently calling me a perma bear but all I'm really doing is waiting to position for this possibility
About a fortnight ago, when Bitcoin slipped below $30,000, Bitcoin Jack had already emphasised that in his opinion the bull market is not over yet and that BTC will see another bullish phase. Will it start now?