Bitcoin VWAP Oscillator Indicates BTC Rally Halfway Done: Analyst
Are you wondering how far the current Bitcoin surge has reached? Well, according to analyst Willy Woo, it seems like we’re only halfway there. In a recent post on X, Woo shared an update on the Bitcoin Volume Weighted Average Price (VWAP) Oscillator, indicating that the rally might only be halfway done.
But first, let’s break down what the VWAP is all about. This indicator calculates an average price for Bitcoin based not just on price changes throughout the day, but also considering the volume traded at these prices. While centralized exchanges usually provide spot volume data, in the case of Bitcoin, the blockchain is used to calculate the VWAP.
The VWAP Oscillator, the main point of interest here, measures the ratio between Bitcoin’s spot price and the VWAP, representing it as an oscillator around zero. Earlier this month, Woo pointed out a bullish divergence forming in the Bitcoin VWAP Oscillator, indicating a potential upward trend for the coin.
A look at the chart reveals that the Bitcoin VWAP Oscillator has climbed inside the negative territory, signaling bullish momentum for the coin. Previous instances have shown that such setups lead to positive trends until the oscillator peaks in positive territory. As Woo noted, Bitcoin had “a lot of room to run” at that point.
Fast forward to now, after a recovery rally, the price has experienced a slight pullback. The VWAP Oscillator has returned to a neutral position, suggesting that the bullish divergence may be coming to fruition. Woo predicts that based on past trends, the current Bitcoin surge has reached the halfway mark.
So, what’s next for Bitcoin? Woo mentions the need for consolidation below the all-time high before potentially seeing another leg up to new highs. He also points out a “risk signal” for Bitcoin, indicating a phase where risk increases as price reacts to capital inflows, leading to rapid gains.
In terms of price action, Bitcoin briefly surpassed $71,000 before retracing below $70,000. The asset’s volatility is to be expected as it navigates through this crucial halfway point in the current surge.
With all eyes on Bitcoin and its ongoing rally, it’s essential to keep an eye on indicators like the VWAP Oscillator to gauge where the cryptocurrency might be headed next. As Woo’s analysis suggests, we may just be halfway through an exciting chapter in Bitcoin’s journey to new highs. Stay tuned for more updates as the crypto market continues to evolve.
