The world’s largest cryptocurrency Bitcoin (BTC) has been flirting around $68,000 after facing strong rejection at $70,000 last week. While the BTC price has been showing strong signs of consolidation, the on-chain Bitcoin metrics reflect healthy development ahead.
Bitcoin analyst Willy Woo has offered insights into Bitcoin’s recent market behavior, suggesting that the 2.5 months of consolidation under bullish demand has been beneficial for the cryptocurrency. According to Woo, this period of consolidation indicates that the price of Bitcoin has more room to rise before reaching a peak.
Woo highlighted that net capital flows into the Bitcoin network hit bottom during the consolidation phase and have been steadily increasing throughout May. As we have seen, the inflows into spot Bitcoin ETFs have bounced back strong over the past two weeks, with BlackRock overtaking Grayscale recently. The daily demand from spot Bitcoin ETFs outweighs the daily BTC mined, by manifold times.
Additionally, Woo noted a resurgence in demand in futures markets, particularly among retail traders showing long demand.
Analyzing the funding rate for perpetual swaps, Woo observed a rebound in demand among retail traders, depicted by the blue-shaded region, while emphasizing that this demand is rising without reaching dangerously high levels of fear of missing out (FOMO).
During this consolidation phase, a large number of Bitcoins have been moving off exchanges amid strong BTC whale accumulation. This could lead to a BTC supply shock going ahead thereby putting upward pressure on the Bitcoin price going ahead.
Bitcoin analyst Willy Woo recently commented on the cryptocurrency’s price dynamics, highlighting the significant resistance level at $73,000. According to Woo, this price point continues to pose a formidable obstacle to Bitcoin’s upward movement.
However, Woo pointed out that if the price manages to surpass $72,000, there exists a substantial amount of liquidations that could potentially trigger a short squeeze. This scenario, as per Woo’s analysis, could propel Bitcoin’s price to soar past $75,000 and ultimately break its all-time highs.
In Woo’s opinion, it’s only a matter of time before fundamental demand factors trigger a price squeeze in the Bitcoin market.
In major XRP news today, Ripple strengthened its position in the global stablecoin sector with…
Kalshi applied for perpetual futures tied to altcoins such as Ethereum (ETH), XRP, Solana (SOL),…
Grayscale Investments has submitted its sixth amendment for Hyperliquid staking ETF to the U.S. Securities…
Elon Musk's SpaceX has revealed it will allot a small number of the proceeds from…
The corporate entity behind the Dogecoin Foundation, House of Doge, has signed a partnership agreement…
Telegram's founder, Pavel Durov, has announced a major rebranding for the Toncoin ecosystem, with the…