On-chain analyst Willy Woo is feeling optimistic about Bitcoin (BTC) as the leading cryptocurrency has seen a quick price jump over the last few days.
Woo shared his thoughts with his 1.1 million followers on X, noting that while Bitcoin is set to climb higher, the specific price targets can only be estimated.
“When BTC breaks into all-time highs, there’s no previous resistance for the market to rely on. This means we enter a phase of unfettered price discovery. Expect some wild swings,” he said.
In these situations, Woo suggests two ways to identify new resistance levels. First, he mentions Fibonacci bands, which combine Fibonacci numbers with Bollinger Bands. These tools help assess whether an asset is overbought or oversold and measure volatility.
Woo predicts that Bitcoin could rise about 16% from its current price after a period of consolidation.
“$88,000 to $91,000 was our first target, and we reached it. Now, consolidation should happen here. This is based on local Fibonacci levels and liquidation points where many short positions have been cleared out. It marks the end of mandatory buying from short sellers,” he explained.
He also pointed out that the next macro Fibonacci level is $102,000, which uses the last cycle's high and this cycle's low. “Let’s see where new liquidations gather, but for now, that’s our next target based on Fibonacci numbers,” he added.
As of now, Bitcoin is trading at $87,790.