Bitcoin is providing another set of bullish signals, yet analysts are cautioning this outlook could face headwinds in the short term. Recent data shows a small decrease of 0.07%, with Bitcoin currently valued at $94,125. Even with this minor drop, Bitcoin has rallied by 7.7% in the last week which represents an underlying strength.
Even with an optimistic long-term outlook, Willy Woo warned of short-term challenges ahead for Bitcoin.
"All dips are for buying under the present regime. In the very short term, there’s good chances of dips," - Willy Woo
Funding rate = price premium The declining funding rate signal Woo emphasized that even in the very short term, Bitcoin will see retracements. He further observed that the big upside potential for Bitcoin is probably capped in the short-to-intermediate term.
Bitcoin reestablished its usual inverse relationship with the declining US Dollar Index (DXY) in the month of April. As an added bonus, Bitcoin decoupled from the NASDAQ back in April. These changes demonstrate increasing market robustness and signal an impending significant upward Bitcoin movement.
Future price declines in Bitcoin will be less catastrophic and dramatic, lessening the likelihood of a sharp sell-off. There is no denying that Bitcoin’s liquidity is deepening, just look at Willy Woo’s downward-trending Risk Model.
"It’ll be hard to move upwards with decent momentum due to overextension," - Willy Woo
Bitcoin is on the verge of setting a new interim target at $103,000. This indicates that it’s probably going to consolidate around this level before making another move towards the $108,000 ATH. With the current capital inflows sustained, Bitcoin may have already seen the bottom and is looking to reclaim its all time highs.
"BTC fundamentals have turned bullish, not a bad setup to break all-time highs," - Willy Woo
Bitcoin luminary Willy Woo recently shared valuable insights on Bitcoin in this excellent, short X (formerly Twitter) thread. According to Woo’s Risk Signal Model for Bitcoin we could be on the cusp of a major rally. Three bullish divergences in Bitcoin confirm increasing market optimism and may indicate an upcoming big Bitcoin breakout.
