According to popular on-chain analyst Willy Woo, Bitcoin (BTC) is poised for an upward trend. Recent reports confirm this prediction.
Woo addresses strong indicator of Bitcoin
Woo shared with his one million Twitter followers that the fundamental strength indicator (FSI) of Bitcoin is indicating that the cryptocurrency is almost done with its re-accumulation phase.
The FSI is a metric developed by Woo to measure the strength of 17 fundamental and technical indicators.
Woo said the following:
“Early signs that BTC consolidation is nearing completion (FSI chart below).
Futures demand is currently moving the market, this demand has been climbing against sideways price action (this is bullish).
Volatility dynamics also signaling a larger move is probable.”
Woo, an on-chain analyst, is examining Bitcoin’s cost basis density map. This map tracks the price levels where buyers usually purchase BTC.
According to Woo’s chart, the map reveals that BTC has various levels of support, including down to $25,000.
The dense regions on the chart imply that investors are confirming the price by purchasing and holding for the long term. Moreover, there is a robust area of price confirmation below the current level, which acts as support.
The pink bands on the chart indicate historical July performances.
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $29,921.
Bitcoin could face important challenges
Bloomberg Intelligence’s senior macro strategist, Mike McGlone, cautions that Bitcoin (BTC) may encounter significant challenges before the end of 2023.
McGlone said the fact that Bitcoin’s recent stagnation at the $30,000 price point may be an indication of upcoming unfavorable economic conditions.
“Yes, Bitcoin matters – if it stalls, there may be a bigger issue. Stalling at about $30,000 amid hype about potential for an ETF (exchange-traded fund) launch and the seemingly unstoppable stock market, a Bitcoin pause may signal bigger economic issues.”
