Bitcoin Fundamentals Are Improving as $BTC Enters ‘Re-Accumulation Phase’, Says OnChain Analyst
Popular on-chain Bitcoin analyst Willy Woo has revealed that data appears to show the flagship cryptocurrency’s fundamentals are now improving at a time in which $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 starting to rise.”
Fundamentals are picking up on #Bitcoin.
Fundamental Strength Indicator is no longer overheated and starting to rise (FSI tracks the strength of 17 fundamental and technical indicators)
If price gets much above 25k, we could be in for a short squeeze. pic.twitter.com/ske2YZueXa
— Willy Woo (@woonomic) February 21, 2023
The 17 indicators included in Woo’s Fundamental Strength Indicator include Bitcoin’s Relative Strength Index (RSI), its supply in profit, its realized PnL, its real profit to value ratio, its balanced cap, realized HODL waves, and more.
Per the analyst, if the price of the cryptocurrency manages to hold above the $25,000 mark, it could soon lead to a short squeeze. A short squeeze occurs when the price of an asset rises rapidly and unexpectedly. As short sellers close their positions, the influx of buy orders can further drive up the price of the asset.
In a separate tweet, Woo shared a chart timing previous Bitcoin price cycles, and noted that the chart “probably means we are entering the re-accumulation phase of the cycle.”
Simple is powerful. Here’s the timing of #Bitcoin cycles.
Probably means we are entering the re-accumulation phase of the cycle. Here’s the past zones. pic.twitter.com/CKFQSBni8I
— Willy Woo (@woonomic) February 20, 2023
Late last year, Woo commented on bullish $1 million BTC price predictions that have been made over the past several months, including from former Goldman Sachs executive Raoul Pal and from an Ark Invest analyst.
The analyst suggested that as BTC approaches the market capitalization of fiat currencies there’s increasing bearish pressure on its price, potentially from governments suppressing BTC. He added that if BTC were to “break the sound barrier,” its price would be affected by bullish pressure to “escape towards infinity.”
Among those predicting Bitcoin’s price could reach $1 million, there’s also the CEO of cryptocurrency exchange Kraken, who has said he believes “Bitcoin is going to be $500,000 easily within the next few years” over “how much money printing is going on,” and added that Bitcoin will hit $1 million “easily.”