Analyst Says $71,000 Bitcoin Move Is Only Halfway Through, Here’s Why

An analyst has defined how the present Bitcoin surge seems to have hit the midway completion mark if this indicator is to go by.

Bitcoin VWAP Oscillator Suggests BTC Rally Only Halfway Completed

In a brand new post on X, analyst Willy Woo has posted an replace for the way the Bitcoin Quantity Weighted Common Worth (VWAP) Oscillator is wanting like after the newest rally.

The VWAP is an indicator that, as its full kind suggests, calculates a median worth for the cryptocurrency based mostly on not simply the modifications within the worth over the day but additionally the quantity that was traded at these costs.

Associated Studying

Usually, this quantity is measured utilizing the spot quantity information offered by centralized exchanges. Nonetheless, within the case of Bitcoin, the blockchain is accessible for anybody to discover, so on-chain quantity is used to calculate the VWAP as an alternative.

The VWAP Oscillator, which is the precise metric of curiosity right here, takes the ratio between the cryptocurrency’s spot worth and the VWAP and represents it as an oscillator round zero.

Earlier within the month, Woo had identified how the Bitcoin VWAP Oscillator was forming a bullish divergence for the asset.

How the VWAP Oscillator seemed like earlier within the month | Supply: @woonomic on X

As is seen within the chart, the Bitcoin VWAP Oscillator climbed up contained in the unfavourable territory after forming an obvious backside again then. On the identical time, the cryptocurrency’s worth had been heading down as an alternative.

Previously, such a setup has confirmed to be bullish for the coin, and the ensuing bullish momentum normally lasts till the VWAP Oscillator tops out in optimistic territory. As such, the analyst remarked that the coin had numerous room to run again then.

Since then, the value has skilled a restoration rally, probably suggesting that the bullish divergence could also be paying off. As Woo identified, the indicator has returned to the impartial mark after this run.

Bitcoin VWAP Update
It seems like the worth of the metric is making a break into the optimistic territory | Supply: @woonomic on X

Primarily based on the truth that tops previously have occurred after the metric peaks within the optimistic territory and based mostly on the size of those peaks normally, the analyst concludes, “this Bitcoin move is now at the halfway mark.”

Associated Studying

As for the way issues may play out subsequent, the analyst says,

Consolidation below all-time-high must occur for a little bit, then we see if the second leg offers us escape velocity to new highs which is able to open up the flood gates.

Woo has additionally shared a “risk signal” for Bitcoin, which reveals the place the asset is when wanting on the greater image.

Bitcoin Risk Signal
The information for the BTC threat sign over the previous couple of years | Supply: @woonomic on X

BTC could also be in that a part of the cycle the place threat begins to drive up as worth reacts violently to capital inflows. “That’s where most of the fast gains happen,” notes the analyst.

BTC Worth

Bitcoin had recovered above $71,000 earlier within the day, however the asset seems to have seen a pullback since then, because it’s now again under $70,000.

Bitcoin Price Chart
The worth of the asset appears to have shot up over the previous day | Supply: BTCUSD on TradingView

Featured picture from,, chart from

DailyBlockchain.News Admin

Our Mission is to bridge the knowledge gap and foster an informed blockchain community by presenting clear, concise, and reliable information every single day. Join us on this exciting journey into the future of finance, technology, and beyond. Whether you’re a blockchain novice or an enthusiast, is here for you.
Back to top button