Renowned on-chain analyst Willy Woo is optimistic about the future of Bitcoin (BTC) as he believes it is primed for a new upward trend following a period of consolidation. Woo, who has a substantial following on the social media platform X, is basing his prediction on Bitcoin’s spent output profit ratio (SOPR), which indicates whether coins are being sold at a profit or loss.

According to Woo, the current data shows that BTC holders have finished taking profits near record highs, indicating a decrease in sell pressure. He describes this as a “very healthy reset” during a time when capital flows into the network are increasing.

In addition to analyzing the SOPR, Woo also shares a chart that suggests capital inflows into BTC are on the rise. This further supports his belief that Bitcoin is preparing for the next phase of its bull market.

Taking a broader perspective, Woo states that Bitcoin is currently in a consolidation phase under all-time highs. He considers this a low-risk period in terms of long-term risk signals, noting that risks typically escalate once the floodgates open.

Based on Woo’s chart, he implies that Bitcoin’s current price action resembles the bull market patterns seen in 2017 and 2020, where BTC consolidated near record highs before experiencing a significant upward rally.

At the time of writing, Bitcoin is valued at $67,097.

Please note that The Daily Hodl, where this article originated, does not provide investment advice. Investors are advised to conduct their own research and exercise caution when investing in Bitcoin, cryptocurrencies, or digital assets.