Favored on-chain Data seems to indicate that the fundamentals of the leading cryptocurrency are now improving at a time when $BTC is entering the “re-accumulation phase of the cycle,” according to bitcoin analyst Willy Woo.
Woo remarked that BTC’s Fundamental Strength Index, which measures the strength of 17 fundamental and technical indicators, is “no longer overheated and starting to increase” in a tweet he sent to his more than 1 million followers on the microblogging platform.
The Relative Strength Index (RSI), supply in profit, realized PnL, real profit-to-value ratio, balanced cap, realized HODL waves, and other indicators are among the 17 components that make up Woo’s Fundamental Strength Indicator.
The analyst believes that a short squeeze may soon occur if the price of the cryptocurrency manages to maintain above the $25,000 level. When the price of an asset increases quickly and unexpectedly, a short squeeze happens. The surge of buy orders might further increase the price of the asset as short sellers exit their positions.
Woo also remarked that the chart “probably suggests we are into the re-accumulation phase of the cycle” in a separate tweet in which he showed a chart depicting prior Bitcoin price cycles.
Woo offered his opinion on positive $1 million Bitcoin price forecasts made over the previous several months, including those of former Goldman Sachs executive Raoul Pal and an analyst for Ark Invest, in late 2017.
According to the expert, there is growing downward pressure on Bitcoin’s price as it approaches the market capitalization of fiat currencies, possibly as a result of governments trying to repress BTC. He continued by saying that if BTC were to “reach the sound barrier,” bullish pressure to “escape into infinity” would have an impact on its price.
A person who believes Bitcoin’s price might reach $1 million is the CEO of the cryptocurrency exchange Kraken. He previously stated that given “how much money printing is going on,” Bitcoin will “easily” reach $1 million within the next few years.