Bitcoin Surges Past $95,000: Analyst Predicts Bullish Setup for New Highs

Bitcoin's Recent Surge

Bitcoin, the leading cryptocurrency by market capitalization, has recently surpassed the $95,000 mark, reaching highs of $95,976 on April 25. This significant milestone comes after a seven-day rally, marking the first time BTC has exceeded $90,000 since early March.

Bullish Fundamentals Take Center Stage

Crypto analyst Willy Woo points to improving fundamentals as a key driver of Bitcoin's recent rally. Woo notes that capital flows into the network are increasing, with both total and speculative flows bottoming out. This alignment of factors creates a bullish environment, suggesting a solid foundation for potential new highs.

Additionally, Woo highlights that the risk model indicator is trending downward, indicating that liquidity may be returning to the market. This could lead to muted downside pullbacks, further supporting the bullish case.

Price Targets and Predictions

While Bitcoin has already surpassed medium-term targets of $90,000 and $93,000, Woo identifies a new interim target of $103,000, with the long-term target of $108,000 remaining in play. However, the analyst also acknowledges the possibility of sideways action or a slow grind upward in the near term.

Woo cites the short-term on-chain VWAP indicator, which is currently at +3 standard deviations, as a sign that upward momentum may be challenging due to overextension. This could result in a period of consolidation or gradual price increases.

Current Market Outlook

At the time of writing, Bitcoin is trading at $94,191, showing a 0.48% decline over the past 24 hours due to early Sunday profit-taking. Despite this short-term correction, Woo remains optimistic about Bitcoin's long-term prospects, suggesting that continued capital flow trends could pave the way for another all-time high.

Woo also cautions that there is a "good chance of dips" in the very short term, but emphasizes that the current setup is favorable for long-term growth. Bitcoin's ability to maintain its upward trajectory will depend on whether it can overcome near-term resistance levels and sustain momentum.

Overall, Bitcoin's recent rally and improving fundamentals suggest a bullish outlook, with key targets in sight. Traders and investors will be closely watching the cryptocurrency's next moves as it approaches critical resistance levels.