In the world of cryptocurrency, popular on-chain analyst Willy Woo is confident that Bitcoin (BTC) is ready to make a strong comeback after a period of consolidation. With over 1.1 million followers on X, a social media platform, Woo shares his insights on Bitcoin’s spent output profit ratio (SOPR), which measures whether coins are being sold at a profit or loss.
According to Woo, the current data suggests that BTC holders have finished taking profits near record highs, indicating that the selling pressure is losing momentum. He describes this as a “very healthy reset” that is accompanied by an increase in capital flows into the network.
In addition, Woo provides a chart that illustrates the rising capital inflows into Bitcoin. This indicates a positive trend and further supports his belief that Bitcoin is preparing for the next phase of its bull market.
Taking a broader perspective, Woo explains that Bitcoin is currently in a consolidation phase under all-time highs. During this period, the risk signal for long-term investments is relatively low. However, he warns that the risk will start to increase once the floodgates open.
Woo’s chart suggests that Bitcoin’s current situation is reminiscent of the bull market setups in 2017 and 2020, where BTC consolidated near record highs before experiencing a significant upward rally.
At the time of writing, the price of Bitcoin stands at $67,097.
Please note that the opinions expressed in this article are not investment advice. Investors should conduct their own research and due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not endorse or recommend the buying or selling of any cryptocurrencies or digital assets, and readers are responsible for their own transfers and trades.
