Bitcoin price and market movements are a subject that various analysts and experts follow carefully. One of these analysts is on-chain analyst Willy Woo. Woo’s recent analysis shows that Bitcoin’s bull market is not yet fully developed and has only just begun.
Woo’s to your analysis Bitcoin’s price models indicate that the cryptocurrency has a potential upper limit. Currently, that cap is $337,000, he notes. This shows that Bitcoin has not yet peaked compared to past price peaks.
“So this is still early stage in the bull market, which is equivalent to last cycle’s $20,000. The last cycle paper did not reach the cap due to Bitcoin pressure, which is less dominant in this cycle.”
The term paper BTC is used for derivatives that represent Bitcoin but do not require actual ownership.
Another key component of Woo’s analysis is based on an indicator called the Bitcoin Macro Index (BMI). This index consists of a combination of 17 fundamental and technical macro signals that track the behavior of Bitcoin investors and miners. According to recent analysis, BMI breaking its upper blue band indicates that Bitcoin is in a strong bull market.
“This week we broke the upper blue band, which signals that we are in a purely fundamentals-based bull market.”
The analyst also notes that the Bitcoin network stores $1.8 billion worth of new capital per day.
“This is the 3rd highest in history, the all-time record was $2.15 billion in January 2021.”
Woo’s analysis is considered an important tool in assessing Bitcoin’s fundamental strength and long-term potential. However, investors and experts should remember that Bitcoin’s price is affected by complex factors and no single analysis can provide a definitive price prediction.
Bitcoin is trading at $72,568 at press time. The top-ranked crypto asset by market cap hit an all-time high a few hours ago. 73,637 reached the dollar.
You can follow the current price movement here.
