Bitcoin VWAP Oscillator Suggests BTC Rally Only Halfway Done
Are you keeping an eye on the current surge in Bitcoin prices? Well, according to analyst Willy Woo, it seems that we may only be halfway through this rally. In a recent post on X, Woo discussed the Bitcoin Volume Weighted Average Price (VWAP) Oscillator and how it indicates that the current rally might still have room to grow.
The VWAP is an indicator that calculates an average price for Bitcoin based on both price changes and volume traded. Instead of using centralized exchange data, the VWAP uses on-chain volume data, making it a more accurate representation of the market.
The VWAP Oscillator, the metric of interest here, measures the ratio between Bitcoin’s spot price and the VWAP, representing it as an oscillator around zero. Woo had previously pointed out a bullish divergence in the VWAP Oscillator, indicating a potential upward momentum for the cryptocurrency.
As shown in the chart, the VWAP Oscillator climbed into negative territory before the recent price rally, suggesting a bullish trend for Bitcoin. Woo noted that the price has now recovered, bringing the indicator back to a neutral mark. Based on historical data, Woo suggests that we are only at the halfway mark of this Bitcoin move.
Looking ahead, Woo anticipates consolidation under the all-time high before potentially seeing a second leg of the rally that could lead to new highs for Bitcoin. He also highlighted a “risk signal” for Bitcoin, indicating that the asset may be entering a phase where rapid gains driven by capital inflows are likely.
Despite a pullback from highs above $71,000 earlier in the day, Bitcoin is still trading strong above $70,000. The price chart shows a significant increase in the asset’s value over the past day, indicating the ongoing momentum in the market.
As Bitcoin continues its upward trajectory, it will be interesting to see how the market unfolds in the coming days. Keep an eye on the VWAP Oscillator and other key indicators to gauge the market sentiment and potential price movements. Stay tuned for more updates on Bitcoin’s rally and be prepared for potential new highs in the near future.
