On-Chain Analyst Willy Woo Says Bitcoin Setting Up To Doubtlessly Attain ‘Escape Velocity’ – Right here’s Why

2 views 2:47 pm 0 Comments May 8, 2024

On-chain analyst Willy Woo thinks Bitcoin (BTC) could possibly be primed to surge in worth.

Woo tells his 1.1 million followers on the social media platform X that the highest crypto asset is flashing a bullish divergence “with a lot of room to run” on its volume-weighted common worth (VWAP) oscillator chart.

“Looks like setup for BTC to succeed in escape velocity.”

Supply: Willy Woo/X

VWAP represents the common traded worth of an asset all through the day, making an allowance for each quantity and worth. Merchants use the VWAP to assist them decide whether or not an asset is buying and selling underbought or overbought based mostly on its intraday worth motion.

Explains Woo,

“VWAP oscillator makes use of the ratio of worth to VWAP worth (z-scored), on this case I’m utilizing on-chain quantity slightly than trade reported quantity…

By shifting to on-chain quantity the sign excludes short-term hypothesis and focuses on investor actions. Purchase and sells by short-term speculators are ignored whereas purchase and promote related to trade flows might be included.”

Primarily based on Woo’s evaluation, he seems to counsel that the bullish divergence between the VWAP oscillator and Bitcoin’s worth signifies a rising urge for food of buyers to build up BTC even amid lowering costs. In technical evaluation, a bullish divergence means that an asset could also be gearing up for a development reversal.

Final week, Woo predicted BTC would surge to $1 million by 2035. The on-chain analyst argued that there’s a historic correlation between Bitcoin’s worth and the variety of BTC customers, which he expects to proceed to extend based mostly on his development curve mannequin.

Bitcoin is buying and selling at $62,977 at time of writing and is up almost 5% prior to now week.

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