April 23, 2024

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On-chain analyst Willy Woo outlines how high Bitcoin can rise before it overheats

On-chain analyst Willy Woo outlines how high Bitcoin can rise before it overheats

Well-known analyst Willie Woo says that Bitcoin (BTC) may have more room to run after breaking the $30,000 level.

Woo Tells million followers on Twitter that he is closely watching the fundamental Bitcoin Strength Index, which tracks 17 basic and technical indicators.

According to Woo, Bitcoin could rise more than 30% from its current value of $30,555 before the top digital asset becomes overbought.

“If that step completes, here’s a chart to give an idea of ​​how much space we have to move before it basically gets too hot.

By basics, I mean what’s happening across the BTC network… miners, cost basis for newer investors, selling experienced hands, technologies, etc. “

Source: Willy Woo / Twitter

According to Woo, Bitcoin pass The $40,000 level is an extension of its current high.

“eg ~40,000 BTC USD.”

analyst He says Bitcoin’s recent surge was likely driven by veteran traders who accumulated BTC when the price of King’s cryptocurrency dropped to around $25,000 last week.

Professionals dominated this move in exchange for lower prices.

The graph shows the demand for the futures contract, and is usually the tool of the professionals.

They’re not lightening their bags just yet, and that could change quickly.

Immediate (long-term) demand was minimal.”

Source: Willy Woo / Twitter

Wu too Believes Veteran traders are betting big on Bitcoin because they believe the US Dollar Index (DXY) is about to bearish trend.

“My best picture is the pros are trading long-term weakness in DXY technical charts. BTC is a great way to trade as a proxy due to the liquidity and larger moves.”

Woo He says In simple terms, the bitcoin market is going through a short squeeze.

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“People want a simpler breakdown of what this graph means.

The red line represents increased demand in the calendar futures markets, measured by basis (the cost of holding a long position).

Ultimately, it’s a short squeeze from this market…”

A short squeeze occurs when traders borrow an asset at a certain price in the hope of selling it at a lower price to pocket the difference, but are forced to buy back the asset they borrowed as momentum moves against them, causing a further rally.

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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.

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