A combination of multiple indicators tracking Bitcoin (BTC) on the blockchain could continue the benchmark cryptocurrency's price rally further into 2022, popular on-concatenation analyst Willy Woo anticipates.

In his contempo newsletter, the market researcher wrote that he expects Bitcoin prices to reach the $fifty,000–$65,000 range in the coming sessions. His comments appeared as BTC/USD reclaimed its 3-calendar month high above $42,600 but days later on crashing below $30,000, the pair's psychological support level.

"My expectation is like to BTC at $20k all-fourth dimension-high in January, where the price is pinned close to the $40k-$42k ceiling over a period of days (2 weeks maximum) wearing down sellers, followed by a faster move to $50k," said Woo.

"The next major consolidation ring is $50k-$65k."
Bitcoin has been rangebound betwixt $thirty,000 and $40,000 since May 2022. Source: TradingView

BTC supply crisis

Bitcoin's price rallied aslope supportive comments from Tesla'south Elon Musk, Twitter's Jack Dorsey and Ark Invest's Cathie Wood in July. The cryptocurrency besides rose on rumors that global retail giant Amazon would starting time accepting it as payments, a claim that the company later on refuted.

Meanwhile, Bitcoin'south run-upwards to $42,600 also came right after United States Federal Reserve Chairman Jerome Powell admitted the possibility of acting inflationary shocks during a press conference last Wednesday. In item, crypto bulls care for Bitcoin equally their hedge confronting rising consumer prices.

Related: Bitcoin struggles at $40K subsequently 'most confusing' Jerome Powell press conference

What's noteworthy is that the menstruation of Bitcoin'south toll recovery from under $xxx,000 coincided with an increasing liquid supply daze. Specifically, BTC was taken off exchanges, which, equally Woo suggested, was due to strong holders locking them abroad for long-term investment.

Bitcoin liquid supply daze oscillator. Source: Willy Woo

"Equally of today, the Liquid Supply Shock metric is at a level which is consistent with a $55K toll level," the analyst wrote on Sun, pointing at the high deviation between the available supply and the current Bitcoin prices.

"Despite a powerful 44% rally in less than two weeks, nosotros are still in a heavily discounted zone for BTC."

Miners return

China'due south ban on cryptocurrency activities in May played a crucial role in sending Bitcoin prices lower this summertime. The decision paralyzed the region's crypto mining manufacture, which at one point deemed for more than one-half of the global hash rate.

Glassnode reported in June that miners either closed downwards their rigs to comply with the new law or shifted their operations outside China, thereby incurring additional costs to keep their product running.

The data analytics platform also noted that miners would likely liquidate a portion of their Bitcoin holdings to comprehend additional expenses. But, as it turned out, the miners' net BTC accumulation tendency reversed in May, showcasing capitulation.

Simply every bit Woo noted, miners resumed Bitcoin aggregating in July. He cited the pop Bitcoin Hash Ribbon metric, which tracks the network'southward expansion and loss of hash rate, noting that it was recovering for the first time since the China ban.

Bitcoin hash ribbon vs. BTCUSD price action. Source: Willy Woo

"Ribbon recovery events spell the terminate of miners sell-off (which is what they do when they are driven out of business)," wrote Woo.

"Typically a recovery of the ribbon opens the way for a multi-month period of bullish price action. This indicator did a very expert chore of locating the toll bottom."

Whale activity spikes

The past week has seen strong buying from whales, added Woo while pointing at Bitcoin's climb from $29,300 to over $42,600.

Whales typically represent entities that hold more than than ane,000 BTC in their Bitcoin addresses. While they don't exclusively impact the market's directional bias, their buying in unison with relatively small Bitcoin investors points to a strongly bullish scenario.

Related: Bitcoin accumulation accelerates among 'whales' and 'fish,' while BTC rallies to $40K

The analyst noted that all investor cohorts — big or small — have been ownership Bitcoin for ix consecutive days — something even he has never witnessed in the cryptocurrency'due south lifetime.

Whale-led Bitcoin buying typically follows up with large toll spikes. Source: Willy Woo

"The present buying by all cohorts is strongly bullish," said Woo. "When anybody is buying, who is the seller? The sellers are traders. The coins sold past traders reduce the speculative inventory on spot exchanges."

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