Renowned on-chain analyst Willy Woo predicts a wave of liquidations waiting to happen once Bitcoin (BTC) reaches $72,000. With a following of 1.1 million on the social media platform X, Woo reveals that $1.5 billion in short positions are on the brink of being liquidated, potentially leading to a surge in price up to $75,000 and beyond to a new all-time high.

In addition to this, Woo delves into the Bitcoin Macro Oscillator (BMO), a combination of four key indicators: Market Value to Realized Value (MVRV), volume-weighted average price (VWAP) ratio, cumulative value-days destroyed (CVDD), and the Sharpe Ratio. MVRV helps determine if Bitcoin is overvalued or undervalued by comparing its market capitalization to its realized capitalization. VWAP reflects the average price of an asset traded throughout the day, aiding traders in identifying underbought or overbought assets based on intraday price movements.

The coin days destroyed metric evaluates the value of each Bitcoin transaction while considering the length of time since the coins were last moved, with CVDD showing the cumulative sum of this metric in relation to the market age. The Sharpe Ratio measures the risk-adjusted return of an investment, providing a comparison of returns to volatility.

Woo explains, “The period of consolidation under strong demand has been beneficial for Bitcoin, allowing for potential price increases before reaching a peak. The BMO chart indicates a movement down one level, with room for 2-3 more levels before a significant market top.”

At the time of writing, BTC is trading at $71,121. Stay informed by subscribing to receive email alerts and follow us on X, Facebook, and Telegram for the latest updates and insights. Remember to exercise caution and conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Your financial decisions are your own responsibility, and The Daily Hodl does not provide investment advice or recommendations. Please be aware that affiliate marketing is utilized by The Daily Hodl.