Bitcoin Fundamentals Improve As $BTC Enters ‘Re-Accumulation’ Phase, Says OnChain Analyst
Popular Bitcoin analyst Willy Woo has revealed that data appears to show that the flagship cryptocurrency is improving at a time when $BTC is entering the “re-accumulation phase of the cycle.”
In a tweet Woo shared with his over 1 million followers on the microblogging platform, the analyst noted that BTC’s Fundamental Strength Indicator, which tracks the strength of 17 fundamental and technical indicators, “is no longer overheated and is beginning to rise.”
The 17 indicators included in Woo’s Fundamental Strength Indicator include Bitcoin’s Relative Strength Index (RSI), its Offer in Profit, its Realized PnL, its Real Profit to Value Ratio, its Balanced Cap, Realized HODL Waves, and more.
According to the analyst, if the price of the cryptocurrency manages to stay above the $25,000 mark, it could quickly lead to a short squeeze. A short squeeze occurs when the price of an asset rises rapidly and unexpectedly. When short sellers close out their positions, the influx of buy orders can further increase the price of the asset.
In a separate tweet, Woo shared a chart timing past Bitcoin price cycles, noting that the chart “probably means we’re entering the reaccumulation phase of the cycle.”
Late last year, Woo commented on bullish $1 million BTC price predictions that have been made in recent months, including from former Goldman Sachs CEO Raoul Pal and from an Ark Invest analyst.
The analyst suggested that as BTC approaches the market value of fiat currencies, there is increasing bearish pressure on the price, potentially from governments suppressing BTC. He added that if BTC were to “break the sound barrier,” the price would be affected by bullish pressure to “escape toward infinity.”
Among those predicting that Bitcoin’s price could reach $1 million is the CEO of cryptocurrency exchange Kraken, who has said he believes “Bitcoin is going to be $500,000 easily in the next few years” over “how much money printing is happening ,” adding that Bitcoin will reach $1 million “easily.”
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