On-chain analyst Willy Woo is leaning bullish on Bitcoin (BTC) amid the flagship crypto asset’s rapid advance over the past couple of days.
Woo tells his 1.1 million followers on the social media platform X that while Bitcoin is primed to go higher, the targets that BTC could potentially hit can only be determined by extrapolation.
[adinserter block="1"]“When BTC breaks into all-time highs, there’s no prior history of resistances for the market to trade around. This means price goes into unfettered price discovery, expect wild swings.
In these situations, we have two guides to find new resistances. Fibonacci bands, using magic numbers seen in nature, and real liquidation levels of market positions.”
Fibonacci bands is a technical analysis tool that uses the Fibonacci numbers in combination with Bollinger Bands – an indicator used to determine overbought or oversold conditions as well as measuring volatility.
According to Woo, Bitcoin is likely to appreciate by around 16% from the current level after a period of consolidation.
“$88,000 – $91,000 was the first target. We hit it. Consolidation should happen here. This is both from local Fibonacci levels and liquidation levels where most of the shorts have been taken out, it’s the end of compulsory buying from short sellers getting culled.
$102,000 is the next macro Fibonacci [level], using last cycle high and this cycle low. Let’s see where new liquidations cluster around, but for now, that’s our next target based on Fibonacci [numbers].”
Bitcoin is trading at $87,790 at time of writing.
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