An analyst recently pointed out how Bitcoin appears poised for escape velocity based on this indicator’s trendline.
Willy Woo has revealed in a post on X that Bitcoin’s Volume-Weighted Average Price (VWAP) oscillator has recently displayed signs of bullish divergence, providing evidence for bullish divergences within this cryptocurrency sector.
This metric places more weight on prices where more volume has been traded, usually the exchange-reported volume is used, however in case of Bitcoin where all transaction history can be seen through blockchain data he used the on-chain volume instead to calculate VWAP for BTC.
VWAP oscillator, as presented in this chart by an analyst, measures the relationship between an asset’s spot price and VWAP. Here is their chart that displays this metric over recent years:
Value has seen an apparent decrease of late | Source: @woonomic on X As shown by this graph, Bitcoin VWAP oscillator had been trending negative over the last month but recently showed signs of improvement.
Although this metric has been rising over time, its trajectory remains well within red zone limits and cryptocurrency’s price is in fact declining concurrently with this rise.
Woo states this as an instance of bullish divergence for this asset and believes there to be “considerably more room” to run, since peak coins typically form when their oscillator has reached an equilibrium point reversal at higher than expected levels within its positive zone, yet still relatively far off from such levels.
Analysts note, in their commentary, that it appears as though BTC may be poised for escape velocity; yet to be seen whether its bullish divergence will bear fruit for its value as an asset class.
Bitcoin Whales (investors with 1,000 BTC or more) were seen purchasing at recent lows of the asset; however, market intelligence platform IntoTheBlock revealed their accumulation sprees have shown an overall downward trend.
Since February 2018 | Source: IntoTheBlock on X
From this chart it can be observed that Bitcoin whales have been purchasing at each dip over recent months – although its scale seems to diminish with each one.
At present, Bitcoin prices are hovering at approximately $63,500; an increase of almost one percent since last Monday.
Seemingly, the price of cryptocurrency assets have been steadily climbing over recent days | Source: BTCUSD on TradingView; featured image by Kanchanara from Unsplash; featured chart by TradingView
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