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Renowned on-chain crypto analyst Willy Woo believes we could soon experience a new all-time high for Bitcoin if certain fundamental capital inflows persist.
Writing a post on his social media X page, Willy Woo suggested that the rising capital inflow into the Bitcoin network, adding to the speculative capital flows from the recent bottoming out, would likely create a solid bullish environment that would lead to a Bitcoin new all-time high. Writing in the post, Woo said:
“BTC fundamentals have turned bullish, not a bad setup to break all-time highs.”
Bitcoin New All-Time High Could Hit $108,000
According to Analyst Woo, the asset’s risk model indicator was already trending back down, meaning that liquidity was most likely returning to the cryptocurrency market.
In the circumstance, Woo stated that the expected downside pullbacks would be unnecessary. Per the analyst, the medium target for BTC would be between $90,000 and $93,000, but a Bitcoin new all-time high could hit the $108,000 target, with the interim target being around $103,000. Willy Woo stated:
“BTC fundamentals have turned bullish, not a bad setup to break all-time highs.”
Evidence of Deepening Liquidity Levels
Even as Willy Woo predicted a new all-time high for Bitcoin of $108K, the analysts stated there was a possibility for a slow grind upward or some sideways action in the coming days, according to a short-term BTC indicator.
Woo suggested a short-term on-chain indicator of at least +3 standard deviations, meaning that in a more bullish situation, users could expect a slow grind upward, which could end up being “the order of the day.”
Commenting on BTC’s liquidity, Willy Woo observed an evident deepening of the asset’s liquidity levels with a downtrend that suggested a return to market liquidity. As a result, Woo indicated that any future price drop would be relatively minor and less severe, thereby eliminating the risk of sharp sell-offs. Woo stated:
“All dips are for buying under the present regime. In the very short term, there’s a good chance of dips.”
A Level of Uncertainty Exists
According to the analyst, the coin’s current price was already far above its typical range, suggesting that an asset that has moved thus far above its average should be considered overextended. He explained by stating:
“It’ll be hard to move upwards with decent momentum due to overextension.”
While the ground seems all set for the flagship cryptocurrency to once again dominate the broader financial landscape with the anticipated Bitcoin reaching a new all-time high, there is still uncertainty about the simmering tensions between China and the US, which continue to weigh on investor confidence amid unpredictable macroeconomic signals.
It would take a single negative development like geopolitical instability to shake the market back into the risk mode it’s just emerging from.
Conclusion
At the time of writing, Bitcoin was trading at $94,756.24, as the market saw profit-taking in the early Sunday session. Woo expects a new all-time high for Bitcoin to come close to and possibly surpass the current all-time high of $109,114 achieved in January.
Frequently Asked Questions
What drives the price of Bitcoin?
Unlike traditional assets tied to a company’s earnings or government backing, bitcoin’s value and price movements are primarily driven by supply mechanics and market sentiment.
Where does the money go when you buy Bitcoin?
The money from Bitcoin sales is distributed among the seller, the platform facilitating the trade, payment processors, and miners.
What is the difference between Bitcoin and cryptocurrency?
Bitcoin is the flagship or pioneer and one-of-a-kind cryptocurrency. Bitcoins are primarily used for storing value and making payments. Cryptocurrencies come in different types and can be used for various purposes, such as supply chain management, smart contracts, payment systems, etc.
Appendix: Glossary to Key Terms
Analyst: An expert specializing in analyzing and interpreting data related to cryptocurrencies.
Bitcoin: A digital currency that operates free of any central control or the oversight of banks or governments.
All-time High: The all-time high (ATH) refers to the highest price a digital asset has ever reached since its inception.
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