On-chain analyst Willy Woo thinks Bitcoin (BTC) could be primed to surge in price.
Woo tells his 1.1 million followers on the social media platform X that the top crypto asset is flashing a bullish divergence “with lots of room to run” on its volume-weighted average price (VWAP) oscillator chart.
“Seems like a good setup for BTC to reach escape velocity.”
VWAP represents the average traded price of an asset throughout the day, taking into account both volume and price. Traders use the VWAP to help them determine whether an asset is trading underbought or overbought based on its intraday price action.
Explains Woo,
“VWAP oscillator uses the ratio of price to VWAP price (z-scored), in this case I’m using on-chain volume rather than exchange reported volume…
By moving to on-chain volume the signal excludes short-term speculation and focuses on investor movements. Buy and sells by short-term speculators are ignored while buy and sell associated with exchange flows will be included.”
Based on Woo’s analysis, he appears to suggest that the bullish divergence between the VWAP oscillator and Bitcoin’s value indicates a rising appetite of investors to accumulate BTC even amid decreasing prices. In technical analysis, a bullish divergence suggests that an asset may be gearing up for a trend reversal.
Last week, Woo predicted BTC would surge to $1 million by 2035. The on-chain analyst argued that there is a historical correlation between Bitcoin’s value and the number of BTC users, which he expects to continue to increase based on his growth curve model.
Bitcoin is trading at $62,977 at time of writing and is up nearly 5% in the past week.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at 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 advised 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 the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
