As a seasoned crypto investor with a few bull and bear cycles under my belt, I’ve learned to keep an eye on the market trends and analysts’ insights before making any decisions. Currently, Bitcoin is showing signs of consolidation around $66,000, but the level of liquidity gives me reason for optimism. Willy Woo, a renowned on-chain analyst, emphasizes that we are still in the “warm-up” phase and that prices could surge once new capital enters the market.
As a crypto investor, I’ve noticed that despite Bitcoin‘s price surge mid-week, its value continues to fluctuate significantly in the short term. Currently, Bitcoin is bouncing back and forth around the $66,000 mark. However, traders believe the confirmed breakout occurred earlier, leading them to anticipate a push toward $70,000.
Starting from its peak in March, the coin has exhibited a consistent decline based on the daily chart’s pattern.
BTC Liquidity Is High Despite Accumulation: Analyst
As uncertainty starts to surface, I, Willy Woo, an experienced Bitcoin on-chain analyst, aim to reassure fellow investors by sharing my perspective: the coin is gearing up for significant price increases in the near future based on my analysis of its on-chain data.
As a researcher, I would like to highlight an intriguing observation made by Woo. Although prices appear stagnant on the daily chart, it’s crucial to focus on the market’s liquidity levels according to his perspective.
Woo highlighted the significance of Bitcoin’s place in its liquidity cycle by presenting a chart. The Bitcoin liquidity cycle represents the fluctuations between boom and bust phases in the history of this prominent digital coin. Each cycle is shaped significantly by the influx and ebb of capital into and out of this valuable asset.
As an analyst, I remain optimistic despite the current price downturn and consolidation. I view this phase as a “warm-up” before the coin’s next significant upward move. Furthermore, the high liquidity during this period reduces the risk for long-term investors.
Based on a retrospective analysis of previous price trends, the forecast suggests that Bitcoin’s value is poised for significant growth. Once large-scale investment pours in, causing a surge in demand, both the rewards and risks will escalate accordingly.
Bitcoin Uptrend Just Getting Started?
Ki Young Ju, the founder of CryptoQuant, endorsed Woo’s perspective. Regarding your query, Ju expressed that Bitcoin is currently experiencing a bull market run.
The founder highlighted that Bitcoin’s market value has been expanding more rapidly than its “realized value.” The realized value represents the aggregate worth of all existing coins, calculated based on the most recent transaction prices for each coin.
For approximately two years historically, this trend has maintained its course. Should this pattern continue, the bull market may conclude around April 2025.
As a crypto investor, I’ve noticed a surge of interest in investing in spot Bitcoin exchange-traded funds (ETFs) lately. According to ETF analyst Eric Balchunas, this trend has led to an inflow of over $1.3 billion into these derivative products within the last two weeks. Remarkably, this influx managed to counterbalance the outflows we experienced in April.
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2024-05-17 19:16