Even after the rally mid-this week, bitcoin prices continue to fluctuate, considering price action over shorter time frames. The coin is retesting $66,000 at spot rates, but traders hope the breakout has been confirmed, pushing btc prices towards $70,000.
Since hitting all-time highs in March, the coin has been in a consistent downtrend, as shown by the formation on the daily chart.
btc Liquidity High Despite Accumulation: Analyst
Therefore, as doubts arise, Willy Woo, a bitcoin on-chain analyst, is calming market participants, saying that the coin is preparing for strong gains in the coming days.
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Although prices remain flat on the daily chart, which is important to note, Woo x.com/woonomic/status/1791402788070810020″ target=”_blank” rel=”nofollow”>saysis the level of liquidity.
Sharing a chart on x, Woo emphasized bitcoin's position within its liquidity cycle. The bitcoin liquidity cycle is simply a graph that shows the boom and bust periods of the world's most valuable currency. Each history cycle is greatly influenced by the availability and flow of capital into and out of the asset.
The analyst is optimistic, arguing that although prices have come down from all-time highs and appear stuck in consolidation, the currency is still in a “warm-up” phase. Woo adds that the current period of consolidation means long-term risk is low in light of relatively high liquidity.
By comparing the current situation with the past price action, the analyst predicts that bitcoin prices will likely rise. When “the floodgates open” and new capital enters the market, prices will skyrocket, but so will risk.
Is bitcoin's bullish trend just beginning?
Ki Young Ju, founder of CryptoQuant, a cryptanalysis platform, supported Woo's position. For x, Ju x.com/ki_young_ju/status/1791424394444869878″ target=”_blank” rel=”nofollow”>saying bitcoin is in the middle of a bull cycle.
To explain this opinion, the founder noted that the capitalization of bitcoin has grown faster than the limit reached. Realized limit is a metric that aims to measure the total value of all coins in circulation based on the price at which they last moved.
Historically, this trend has persisted for about two years. If this pattern holds, the bull cycle could end in April 2025.
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Amid this, interest in spot bitcoin exchange-traded funds (ETFs) appears to be increasing. An ETF analyst, Eric Balchunas, x.com/EricBalchunas/status/1791443740822745158″ target=”_blank” rel=”nofollow”>saying These derivative products have attracted a net inflow of more than $1.3 billion in the past two weeks alone. This rebound effectively offset the negative flows seen in April.
Featured image of DALLE, TradingView chart
