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Bitcoin user growth to drive bullish breakout, says analyst

Key facts:

The growth of bitcoin users has accompanied the price increases.

There are no structural signs of a bear market in sight, says Willy Woo.

When confirming that bitcoin (BTC) is going through a phase of a “supply shock” and that an upward break could be made in the coming days, analyst Willy Woo highlights that the growth of network users is one of the factors that will drive the upward movement of prices.

Woo had already stated that there was a clear divergence between the lateral movement of bitcoin prices and the fundamental parameters of the network in his previous bulletin on the market of that cryptocurrency, which was commented on by CryptoNews. The analyst, on the other hand, assured that bitcoin could reach USD 50,000 in the coming days, in an analysis reported this Friday by this medium.

To support his hypothesis, Woo presents, in a private report, the growth of Bitcoin users as one of the main arguments that would favor the price impulse. In the following graph, the specialist shows the evolution of user growth along the bitcoin price curve.

As user growth stops, a downturn occurs, says Willy Woo. Source: charts.woobull.com.

Woo explains that, to calculate user growth, he takes the number of newcomers and subtracts those who leave the network, after spending or selling the BTC they own.

As I mentioned in the previous two bulletins, the fundamental metric for user growth is solidly bullish. There are no structural signs of a bear market in sight. In fact, we are in a region of parabolic growth (even on a logarithmic scale).

Willy Woo, Bitcoin Market Analyst.

Another aspect of the importance of the growth of users that Woo highlights with respect to the price is indicated in the previous graph with circles, each time there is a local maximum of users. When the number of users begins to decrease, a downward price cycle begins, as shown in the graph.

In my 8 years in the bitcoin market, I have never seen that fundamentals do not influence the price given enough time. The market is not appreciating the bullish fundamentals, which opens up a great buying opportunity for those who are patient..

Willy Woo, Bitcoin Market Analyst.

The low volatility of bitcoin, the unlocking of the shares of the Grayscale bitcoin fund, this Saturday, July 17, and the new difficulty adjustment on Sunday, 18, make up, together with the growth of users, a window of high probability for a major price movement this coming weekWoo concludes.

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