Bitcoin Targets New Highs as Capital Inflows Strengthen, Analyst Suggests

Bitcoin recently reclaimed significant ground as it surpassed the $95,000 mark, reaching a seven-day high of $95,976 on April 25. This is the first time Bitcoin has crossed the $90,000 threshold since early March, reviving optimism across the cryptocurrency market.

According to crypto analyst Willy Woo, Bitcoin’s fundamentals have shifted into a bullish phase, setting the stage for potential new highs. Woo indicated that capital flows into the Bitcoin network are rising, while total and speculative flows appear to have bottomed. He explained that aligning these two factors often builds a strong, bullish environment based on solid fundamentals.

Besides the bullish capital flows, Woo pointed out that the risk model indicator has started trending downward. Consequently, this suggests that liquidity might return to the market, potentially muting any major downside pullbacks.

In recent trading sessions, Bitcoin’s medium-term targets of $90,000 and $93,000 were tactically achieved. However, Woo maintained that the $108,000 target remains within reach, with a new interim target emerging at $103,000.

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Short-Term Indicators Highlight Caution Despite Uptrend

Despite the positive outlook, Woo advised caution in the short term, noting signs of overextension in Bitcoin’s short-term movements. He observed that the on-chain VWAP indicator is currently at +3 standard deviations. Hence, further rapid upward moves might encounter resistance, limiting momentum in the immediate term.

During his latest public appearance, Woo indicated that Bitcoin might stay static or gradually rise due to continuous momentum in the upcoming days. At the time of writing, Bitcoin had declined slightly by 0.23 percent in the last 24 hours to $94,012, reflecting early Sunday profit-taking activities.

Woo predicted that short-term market dips are probable, but long-term market conditions will be stable. The current capital inflow trend gives Bitcoin the potential to achieve another new all-time price high.

Bitcoin last set an all-time high of $109,114 in January, and investors are now closely monitoring the market to see if the digital asset can break past its previous peak in the coming weeks.

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