Bitcoin (BTC) should cost at least $55,000 per coin according to one metric measuring its so-called "supply shock."

In a tweet on Sunday, analyst Willy Woo highlighted what he added is a "bourgeois" price estimate for BTC/USD.

Bitcoin price plays catch-upward with metrics

While Bitcoin has however not established $fifty,000 as firm back up, on-chain metrics take been much more firmly bullish for some fourth dimension.

Now, the and then-chosen "supply daze valuation model" has joined them, giving a conservative price estimate of $55,000.

Supply shock is simply the unavailable BTC supply divided past the available BTC supply. This goes deeper than at first glance, as Woo uses information technology to effectively "wave a magic wand and gauge the intent of investors earlier the bids and offers are fifty-fifty placed."

"In this view of need and supply, an investor who has no intention to sell is on the need side while an investor who is willing to sell is on the supply side," he explained in a blog mail service last month.

The valuation model additionally uses an algorithm to compare like supply and demand situations to now, thus producing a off-white cost estimate.

"It's conservative equally one of the SS metrics, exchange SS, is now above all-time-high so no wait-back is possible," Woo best-selling in the tweet, referring to the ratio of coins in common cold storage compared to on exchanges being at record levels.

The accompanying chart captures when BTC'south toll moved with and without whatsoever shifts in investor intent.

Bitcoin supply stupor valuation model. Source: Willy Woo/Twitter

$fifty,000 offset hurdle for bulls

Bitcoin's supply shock is an ofttimes-used phrase in the current market place thanks to 2022 being the year afterward a block subsidy halving issue.

Related: More like 'shock-to-menstruum' — BTC price hits bull trigger as mystery buyers scoop upward supply

With miners now unlocking just vi.25 BTC per block, and then far, Bitcoin has behaved broadly similarly to previous post-halving years — 2022 and 2022.

The conservative $55,000 minimum target nonetheless remains above another set up of monthly shut minimums from analyst PlanB, who guesses that September will accept a minimum monthly close of $43,000.

Thereafter, notwithstanding, upside resumes in hostage, with Bitcoin closing out 2022 on at least $135,000.

At the time of writing, BTC/USD traded at $fifty,200, having stayed in a tight range throughout the weekend.

BTC/USD one-24-hour interval candle chart (Bitstamp). Source: TradingView