Bitcoin (BTC) could experience a significant price surge, according to on-chain analyst Willy Woo. Woo, who has a following of 1.1 million on the social media platform X, believes that the leading cryptocurrency is displaying a bullish divergence on its volume-weighted average price (VWAP) oscillator chart, indicating that it has the potential for further growth. He refers to this setup as a signal for Bitcoin to reach “escape velocity.”
The VWAP is a measure of an asset’s average traded price throughout the day, taking into account both volume and price. Traders use it to determine whether an asset is trading underbought or overbought based on its intraday price action. In this case, Woo has modified the VWAP oscillator to use on-chain volume instead of exchange reported volume. This modification allows the signal to exclude short-term speculation and focus on investor movements, specifically buy and sell actions associated with exchange flows.
Woo’s analysis suggests that the bullish divergence between the VWAP oscillator and Bitcoin’s value indicates a growing interest among investors to accumulate BTC, even during periods of declining prices. A bullish divergence is often seen as a sign that an asset may be preparing for a trend reversal.
In addition to his analysis, Woo previously predicted that Bitcoin would reach $1 million by 2035. He argues 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.
At the time of writing, Bitcoin is trading at $62,977, representing a nearly 5% increase over the past week.
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