Bitcoin Surge Only Halfway Through, Says Analyst Willy Woo

11

Renowned analyst Willy Woo has delved into the current surge in Bitcoin value, stating that according to a specific indicator, this upward trajectory is only halfway through its completion cycle. Drawing on the framework of the Bitcoin Volume Weighted Average Price (VWAP) Oscillator, Woo paints an optimistic picture of the future for Bitcoin investors.

Diving into the mechanics of his tool, Woo explains that the VWAP indicator generates an average price algorithm for Bitcoin. It is predicated not just on the variations in daily price, but also on the volume of trade at various price levels. Usually, volume metric tools rely on spot volume data proffered by centralized exchanges. Bitcoin’s premise, however, allows for an unusual deviation from this norm. It utilizes on-chain volume instead, rendering the blockchain a transparent enclosure accessible for critical exploration.

Follow us on Google News! ✔️


In the grand scheme, the VWAP Oscillator becomes the fulcrum of analysis. Acting as an oscillator around zero, it captures the ratio between the cryptocurrency’s spot price and the VWAP. Gleaning from his observations earlier in the month, Woo highlights a bullish divergence that had begun to take shape for the digital asset via this metric.

A quick scan of past trends should furnish enough evidence of what this could mean for Bitcoin holders. If the Oscillator climbs upwards within the negative space after forming an apparent bottom, Bitcoin’s price typically nosedives. Yet, past narratives have painted such a setup as favorable for the cryptocurrency.

Fast forward to the present day, the price of Bitcoin has ridden a recovery wave, arousing conjecture that this bullish divergence could be paying dividends. In the wake of this partial recovery, the Oscillator has reset, returning to its neutral mark.

For the more seasoned investor, Woo’s analysis might seem like déja vu. His theory revolves around the concept that previous tops within a bullish cycle have come into being only after the Oscillator ascends to the peaks within the positive arena. Taking into consideration the usual magnitude of these peaks, Woo defends his belief that this Bitcoin movement is only at the halfway point.

A consummate analyst, Woo does not stop at internecine projections. He dares to venture the possible trajectory for Bitcoin, stating, “a period of consolidation under the all-time-high will need to unfold. We then gauge if the second leg can propel us to environing new record altitudes which would inevitably unshackle the flood gates.”

Woo, who is not without caution, also deals with the potential risks involved in Bitcoin, providing a holistic “risk signal” view. He opines that Bitcoin may be entering the phase of the cycle where the risk factor escalates as price reactions to capital inflows fluctuate vigorously. He notes, “it is here that the most rapid gains usually take place.”

Even as Bitcoin had earlier soared over the $71,000 threshold, a slight fallback has since seen Bitcoin revert below $70,000. At its core, Woo’s analysis offers an insightful probe into yet another volatile chapter of the currency’s biography. Whether this prediction proves accurate remains to be seen. Nevertheless, its potential promises an exciting time ahead for the cryptocurrency investors and spectators alike.