Bitcoin To Reach Escape Velocity? Analyst Makes The Case

An
analyst
has
explained
how
Bitcoin
seems
to
be
showing
a
good
setup
to
reach
escape
velocity
based
on
the
trend
in
this
indicator.

Bitcoin
VWAP
Oscillator
Has
Been
Showing
A
Bullish
Divergence

As
explained
by
analyst
Willy
Woo
in
a
new

post
on
X,
a
bullish
divergence
has
appeared
to
be
forming
in
the
Volume-Weighted
Average
Price
(VWAP)
oscillator
of
the
cryptocurrency.

The
VWAP
is
an
indicator
that
calculates
an
average
price
for
any
given
asset,
taking
into
account
not
only
the
price
but
also
the
volume.
More
formally,
it’s
calculated
as
the
cumulative
price
sum
multiplied
by
the
volume
divided
by
the
cumulative
volume.

This
metric
puts
a
higher
weight
on
the
price
at
which
more
volume
is
traded.
Usually,
the
exchange-reported
volume
is
used
to
find
the
metric,
but
for
a
cryptocurrency
like
Bitcoin,
the
entire
transaction
history
is
visible
to
the
public
thanks
to
blockchain
data.
Woo
has
used

on-chain
volume
instead
to
calculate
the
VWAP
for
BTC.

The
VWAP
oscillator,
the
actual
indicator
of
interest
here,
is
a
ratio
between
the
asset’s
spot
price
and
VWAP.
Here
is
the
chart
shared
by
the
analyst
that
shows
the
trend
in
this
metric
over
the
past
couple
of
years:

The value of the metric seems to have been on the decline in recent days | Source: @woonomic on X

As
displayed
in
the
above
graph,
the
Bitcoin
VWAP
oscillator
has
been
in
the
negative
territory
for
the
past
month
but
has
recently
shown
a
turnaround.

Although
the
metric
is
heading
up,
it’s
still
very
much
contained
inside
the
red
zone.
At
the
same
time
as
this
rise,
the
cryptocurrency’s
price
has
been
heading
down
instead.

According
to
Woo,
this
is
a

bullish
divergence
forming
for
the
asset
and
it’s
also
one
that
has
a
“lot
of
room
to
run,”
since
tops
in
the
coin
have
generally
occurred
when
the
oscillator
has
reached
a
point
of
reversal
at
relatively
high
levels
inside
the
positive
zone,
which
should
still
be
quite
far
away.

“Seems
like
a
good
setup
for
BTC
to
reach
escape
velocity,”
notes
the
analyst.
It
remains
to
be
seen
whether
the
bullish
divergence
will
end
up
bearing
fruits
for
the
asset.

In
some
other
news,
the
Bitcoin

whales
(investors
carrying
1,000
BTC
or
more)
participated
in
buying
around
the
recent
lows
of
the
asset.
Still,
market
intelligence
platform

IntoTheBlock
has
revealed
that
the
accumulation
sprees
from
these
large
investors
have
been
displaying
an
overall
downtrend.

The trend in the netflow of the BTC whales over the past couple of months | Source: IntoTheBlock on X

From
the
chart,
it’s
visible
that
the
Bitcoin
whales
have
been
buying
at
each
of
the
dips
in
the
last
few
months,
but
it’s
also
visible
that
the
scale
of
this
buying
has
been
diminishing
with
each
one.

This
could
be
a
sign
that
the
appetite
for
buying
among
these
investors,
although
still
present,
is
getting
smaller
with
each
dip.

BTC
Price

When
writing,
Bitcoin
is
trading
at
around
$63,500,
up
over
1%
in
the
last
seven
days.

Looks like the price of the asset has been going up over the last few days | Source: BTCUSD on TradingView

Featured
image
from
Kanchanara
on
Unsplash.com,
IntoTheBlock.com,
chart
from
TradingView.com

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