New Bitcoin price model shows an “exponential” bull run within a month

Earlier this week, on-chain analyst Willy Woo released a new Bitcoin (BTC) price model. The model identifies the start of an exponential Bitcoin bull run based on historical data. According to the model, Bitcoin may be just one month away from an official bull run.

Will the Bitcoin bull run begin in July?

The price of Bitcoin was hovering around $10,000 in February before the coronavirus pandemic caused a sharp correction in the U.S. stock market. At the time, the analyst expected a correction as the price of Bitcoin rejected the key resistance level of $10,500.

Surprisingly, the price of Bitcoin quickly fell, dropping below $6,000 and eventually hitting a yearly low of $3,600 on BitMEX. This created chaos in the cryptocurrency market as leveraged positions worth more than $1 billion were liquidated.

According to Woo, Bitcoin was ready for a bull run before the coronavirus pandemic impacted nearly all risk markets. Woo’s new model accurately marked the start of the previous four bull runs, indicating that Bitcoin is preparing for another uptrend in the near term.

Woo said:

“Here’s a new model I’m working on that identifies the start of an exponential bull run. 1) Bitcoin was bullish until the coronavirus came along and killed the sentiment. 2) New model shows we’re about to have another bull run. Maybe in a month.”

New Bitcoin Price Model Source: Willy Woo

Woo said that if the price of Bitcoin remains stable for a longer period of time, it will strengthen the next breakout. In addition, Bitcoin has maintained relatively low volatility for more than a month, holding the $9,000 support level.

The analyst further explained:

“The longer it takes for a bull market to end, the higher the peak price (Top Cap model) will be. Long periods of sideways accumulation are ultimately a good thing.”

A prolonged period of consolidation beneath multi-year resistance levels, such as $10,500, is often considered a positive as it suggests that buyers are attempting to break through the key level but there is not enough selling pressure to counter it.

Other factors point to a bull market

Since March, Bitcoin’s price has rebounded from the sub-$4,000 region without a major correction, and in the process traders have defended the major support levels of $5,800, $6,500, $8,100, and $8,600.

Cryptocurrency trader Nunya Bizniz said that despite the recent downward trend in Bitcoin’s price, Bitcoin’s market structure remains intact. The analyst said:

“The uptrend has turned into a sideways pattern and Bitcoin price has declined recently. However, the market structure remains intact. The series of higher lows has not been broken. Will this pattern continue?”

Bitcoin has held support since March Source: Nunya Bizinz

The important thing to remember is that despite the current pullback, Bitcoin price remains in an uptrend even if it remains sideways during the consolidation phase. This bullish macro factor and the resilience of Bitcoin’s key support levels together increase the likelihood of a strong bull run in the medium to long term.