Leading on-chain analyst Willy Woo gave an up-to-date assessment of the Bitcoin price. The analyst warned BTC investors of a potential short squeeze scenario. Details are here.
Woo, who is closely followed by the crypto community, told 1 million Twitter followers that the foundations of Bitcoin (BTC) are recovering. told.
“The fundamentals are recovering in Bitcoin.
The Fundamental Strength Indicator (FSI) is no longer over-moving and is starting to rise (FSI tracks the strength of 17 fundamental and technical indicators)
If the price goes well above $25,000, we could get into a hort squeeze.”
Short squeeze is the result of an asset’s price skyrocketing as many short traders have to close their positions. Jamming then triggers additional rallies.
Based on his analysis of the timing of past cycles, Woo states that Bitcoin (BTC) is likely “entering a reaccumulation phase.” The analyst adds the following for a possible recession:
“I am not an expert in macro trading, but macro liquidity seems to be on the rise. BTC is still tied to it. I’m currently expecting a climb and dead cat bounce (dead cat bpunce – a short-lived upward move during the downturn) if the recession starts. Also, I think there may be a divergence in future cycles.”
Bitcoin is trading at $24,169 at press time. The top-ranked crypto asset by market cap has gained 0.31% in the last 24 hours.
You can follow the current price action here.