Bitcoin's Capital Flows Turn Bullish, Analyst Predicts New All-Time Highs

Veteran Bitcoin analyst Willy Woo has expressed optimism about the flagship cryptocurrency's potential to break new all-time highs, citing growing capital flows into the network. Woo, who has a significant following on the social media platform X, shared his insights with his 1.1 million followers, highlighting that Bitcoin's fundamentals have turned bullish. According to Woo, the current structure of Bitcoin is favorable for a break of all-time highs, as both total and speculative capital flows have bottomed out. This alignment, he suggests, creates a bullish environment anchored in strong fundamentals.

However, Woo also noted that in the near term, there is a high likelihood of more sideways price action before Bitcoin gains the strength for a new leg up. He pointed out that his volume-weighted average price (VWAP) indicator is relatively high, indicating that the asset is overextended. VWAP is the average price of an asset over a period of time, weighted for trading volume. Woo explained that this overextension makes it difficult for Bitcoin to move upwards with decent momentum, suggesting that sideways action or a slow grind upwards is more likely in the short term.

In summary, Woo believes that if the trend of capital flows into Bitcoin continues, the cryptocurrency is setting up for another break of all-time highs. He described this as a solid long-term setup, advising that all dips under the present regime are opportunities for buying. However, he also noted that there are good chances of dips in the very short term. At the time of writing, Bitcoin was trading at $93,768, up 11% in the last seven days.