Popular cryptocurrency analyst Willy Woo has recently indicated that he believes the price of the flagship cryptocurrency Bitcoin ($BTC) is in the “early stages of another price squeeze,” suggesting the cryptocurrency’s price could surge in the near future.
In a tweet Woo shared with his over 1 million followers on the microblogging platform, he explained that a short squeeze scenario, which often materializes when an abundance of traders shorting a commodity decide to cut their losses as a result of an unforeseen price surge, prompting subsequent rallies, could now be underway for BTC.
Per Woo, Calendar demand is “ overbought under statistical analysis,” and it’s important to “keep a close eye on basis warning” as it could leave quickly and take away the bullish price action the cryptocurrency has been seeing.
Woo explained in a follow-up tweet that basis refers to the cost associated with maintaining an investment. In this context, the basis signifies the expense of upholding a long position, thus serving as a measure of demand originating from calendar futures.
As CryptoGlobe reported, the popular analyst has recently said he sees BTC’s price rise by a factor of ten under a singular condition, meaning one BTC would trade above $300,000. That condition would be institutions who are, in varying degrees, deploying a percentage of their assets under management to BTC.
Woo’s words comes as major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
These financial behemoths, which include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America are “actively working to provide access to Bitcoin and more,” according to CoinShares’ Chief Strategy Officer Meltem Demirors.
BlackRock, the world’s largest asset manager, took a pioneering leap on June 16 with a spot Bitcoin exchange-traded fund application, seemingly igniting a domino effect as peers rushed to file similar applications.
The market responded with a flurry of activity that saw the price of the flagship cryptocurrency Bitcoin hit a new high for the year above the $31,000 mark, before enduring a slight correction to now trade at $30,600.
Late last year, Woo commented on bullish $1 million BTC price predictions that have been made over the past several months, including from former Goldman Sachs executive Raoul Pal and from an Ark Invest analyst. Per his word,s Bitcoin could become a “true challenger to fiat, thus it’s a price range where fiat collapses.”
Featured image via Unsplash.
