A financial analyst explained that the Bitcoin price surge has reached the halfway mark, based on this particular indicator.
Bitcoin VWAP Oscillator suggests BTC Rally is only Half-Done
It’s a brand new world post Willy Woo, an analyst at X has provided a new update on the Bitcoin Volume Weighted Average Price (VWAP) Oscillator What the rally looks like.
You can also find out more about the following: VWAP The full name of the indicator is a price average for cryptocurrencies based not only on the daily price changes but also on the volumes traded.
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This volume is normally measured by using spot volumes provided by central exchanges. The blockchain for Bitcoin is open to anyone who wants to look at it, and so the on-chain volume used in the calculation of the VWAP.
VWAP Oscillator is the actual metric that matters here. It takes the ratio of the spot cryptocurrency price to the VWAP, and presents it as a oscillator between zero and one.
Woo pointed out earlier in the month that the Bitcoin VWAP Oscillator formed a bullish trend for the asset.
The chart shows that the Bitcoin VWAP Oscillator has climbed into the negative zone after an apparent bottom was formed. During this time the price of cryptocurrency had also been going down.
Such a set-up has historically been bullish and the bullish momentum that results usually lasts up until the VWAP Oscillator hits the top of positive territory. The analyst noted that there was a large amount of potential for the coin back in the day.
The price of the stock has since experienced a rally in recovery, which could indicate that the divergence bullish may have paid off. Woo has pointed out that the indicator is now back to its neutral position after the recent run.
The analyst draws this conclusion based on past tops occurring after the metric peak in positive territory, and the size of the peaks. “this Bitcoin move is now at the halfway mark.”
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The analyst explains how the future could unfold.
The first leg of consolidation under an all-time peak is needed. After that, we will see if the next leg can give us the escape velocity for new highs and open the floodgates.
Woo is also sharing a “risk signal” Bitcoin shows the overall position of the asset.
BTC is in the part of the cycle that begins to increase risk as the price starts to react violently. capital inflows. “That’s where most of the fast gains happen,” The analyst notes.
BTC price
Bitcoin recovered to $71,000 during the early part of the day. However, the price has dropped since, and is now below $70,000.
Featured images from Shutterstock.com and woocharts.com. Charts from TradingView.com
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Source: www.newsbtc.com
