On-Chain Analysis
On-chain analyst Willy Woo believes Bitcoin (BTC) is showing signs of a potential surge in price. According to Woo, the volume-weighted average price (VWAP) oscillator chart is indicating a bullish divergence, suggesting that investors are accumulating BTC despite falling prices.
VWAP Oscillator
The VWAP oscillator measures the average traded price of an asset, considering both volume and price. Woo explains that by using on-chain volume, the signal excludes short-term speculation and focuses on investor movements.
Bullish Divergence
Woo interprets the bullish divergence between the VWAP oscillator and Bitcoin’s value as an indication of increasing investor appetite for BTC. In technical analysis, bullish divergence often precedes a trend reversal.
Long-Term Outlook
Woo previously predicted that BTC would reach $1 million by 2035. He believes that the historical correlation between Bitcoin’s value and the number of users will continue to hold true, leading to a steady increase in BTC’s price.
Current Market Conditions
As of writing, Bitcoin is trading at $62,977, up nearly 5% in the past week. Woo’s analysis suggests that the current price action could be a prelude to a more significant surge in the future.
