The Bitcoin (BTC) market hit a moment of high expectations and doubt after reaching $124,000 last week, then returned to $112,000 due to mass liquidation.
Professional analyst and trader Willie Wu observes these moves with optimism and points out that As long as the market liquidity remains robust, the currency is well positioned to continue to rise.
Wu argues that Bitcoin’s upward cycle is far from exhausting. Traders take a more practical approach. “It’s useless to try and guess the highest price, such as trying to order chaos,” he says.
Instead of specific predictions, Woo focuses on analysis on liquidity metrics. Key indicators for predicting market movements.
For example, the risk signal (market capitalization) for MCR, a metric that assesses market value based on the price each Bitcoin last moved, is decreasing.
The graph shows how MCR supports optimism about the upward potential of Bitcoin, despite recent fluctuations (such as a $124,000-$112,000 decline) in the recent months, in the event of a low or descent.
This shows investors are regaining liquidity, according to WOO, which strengthens the foundation for sustainable growth. “If this trend persists, BTC is a great way to continue,” he says.
Fluidity as a compass
Liquidity explains that Wu acts as a market mattress. If it’s high, there are many buyers and active vendors. This allows for trades without sudden movement in prices.
This stability supports Bitcoin’s orderly advancement. On the other hand, if liquidity is lacking, the market becomes more volatile and small operations can cause large vibrations. therefore, Woo emphasizes that liquidity monitoring is important for predicting trend changes before it is reflected in prices.
Unlike previous cycles where analysts had speculated about price peaks, it employs a more cautious attitude, as reported by Cryptoics.
“We’re just looking at how much prices go up most, but we’re looking for signs of liquidity fatigue,” he says. This change in approach reflects the belief that understanding market behavior is more valuable than trying to predict accurate numbers.
Optimistic market forecasts
Wu’s optimism is consistent with predictions from other companies. Bernstein, a well-known asset management company, estimates that the upward cycle of Bitcoin will be extended until 2027. In the price range forecast between $150,000 and $200,000.
Stony Chambers recommends buying Bitcoin, stating that before 2026 the price could exceed $175,000, and even in bullish scenarios it could reach $300,000.
Despite the biggest recent decline in history, these forecasts strengthen confidence in the potential of Bitcoin. However, Wu argues that the key lies in the market foundation.
“It was too speculative,” he warns, referring to the liquidation that caused the set-off to $112,000. For him, The central question is not how much prices go up, but what investors are doing, how liquidity evolves..
With new approaches to market dynamics, Woo emphasizes the importance of acting at the right time. Identifying when liquidity begins to emit, investors are prepared for possible trend changes.
