Bitcoin has resumed its upward trend, reaching a seven-day high of $95,976 on April 25. This marks the first time the cryptocurrency surpassed the $90,000 threshold since early March, fueling optimism in the market.
Capital Flows and Market Optimism
According to crypto analyst Willy Woo, Bitcoin's fundamentals have shifted into a bullish phase, setting the stage for potential new highs. Woo noted that capital flows into the Bitcoin network are rising, while total and speculative flows seem to have bottomed. He explained that aligning these two factors often creates a strong bullish environment based on solid fundamentals.
Short-Term Indicators Highlight Caution
Despite the positive outlook, Woo advised caution in the short term, noting signs of overextension in Bitcoin's movements. He observed that the on-chain VWAP indicator is currently at +3 standard deviations. Thus, further rapid upward moves might face resistance, limiting short-term momentum.
Outlook for the Coming Weeks
Woo predicted that short-term market dips are likely, but long-term conditions will remain stable. The current trend of capital inflows gives Bitcoin the potential to achieve another all-time price high. Bitcoin last set an all-time high in January when it reached $109,114, and investors are now closely monitoring the market.
The situation in the Bitcoin market continues to attract investor interest, and the coming weeks could be pivotal in determining future trends.
