Well-known on-chain analyst Willy Woo stated that Bitcoin could return to its historical highs if current capital inflows are sustained.
He added that investors should view price declines as healthy corrections and buying opportunities rather than signals of a market crash.
Will Bitcoin be able to reach its historical high again?
Woo shared his thoughts in a detailed thread on X (formerly Twitter). He believes that strong fundamental indicators support Bitcoin's bullish trend.
This includes a growing influx of capital into the Bitcoin network, with overall and speculative capital flows recently hitting a bottom. The alignment of these flows creates a solid, bullish environment for the asset.
"Bitcoin's fundamental indicators have turned bullish, a favorable scenario for overcoming historical highs," he noted.
Moreover, Woo emphasized that Bitcoin's liquidity is deepening, as evidenced by its downward risk model. This downward trend indicates a return of liquidity to the market. Therefore, future price declines are likely to be smaller and less severe, reducing the risk of sharp sell-offs. The analyst also noted that Bitcoin has already regained mid-term price targets of $90,000 and $93,000. Additionally, a new interim target of $103,000 has emerged, suggesting that Bitcoin is likely to reach this level before moving toward the historical high of $108,000.
He clarified that these targets are supported by sustained capital inflows, rather than just speculative trading, which strengthens the arguments for a sustainable upward trajectory.
Despite the optimistic long-term outlook, Woo warned that short-term challenges may arise. The volume-weighted average price (VWAP) of Bitcoin is currently at +3 standard deviations.
This means that the current token price significantly exceeds its typical range. When an asset moves so far from its mean value, it is considered overextended. According to Woo, this indicator suggests that upward momentum may be limited in the near term. Instead, the most likely outcomes are sideways movement or slow, gradual growth, rather than a rapid rally.
Previously, BeInCrypto outlined three main signals that strengthen the arguments for Bitcoin's recovery. In April, Bitcoin reversed its relationship with the declining U.S. Dollar Index (DXY) and decoupled from NASDAQ.
Meanwhile, long-term investors are actively accumulating tokens. Together, these three divergences signal growing confidence in the market and hint at a potential major Bitcoin rally. In fact, recent Bitcoin market dynamics also support this forecast. BeInCrypto data showed that the token's value recovered by 7.7% over the past week. At the time of writing, Bitcoin was trading at $94,125, representing a slight decrease of 0.07% over the past day.#BinanceSquare #Write2Earn #Squar2earn #Binance #crypto $ETH