Veteran Bitcoin analyst Willy Woo says that the flagship cryptocurrency is setting up for a potential break of new highs amid growing capital flows.

Posting to the social media platform X, Woo tells his 1.1 million followers that Bitcoin (BTC) fundamentals have turned bullish, and that its current structure is “not a bad setup” for a break of all-time highs.

“Capital flows into the network are ramping up.

Both total and speculative flows have bottomed. When both align, they join forces to make a bullish environment anchored in fundamentals.”

However, in the near term, Woo says there’s a high chance of more sideways price action before BTC gains the strength for a new leg up, noting that his volume-weighted average price (VWAP) indicator is relatively high.

VWAP is the average price of an asset over a period of time, but weighted for trading volume.

“…but in the short term, on-chain VWAP is at +three standard deviations, meaning it’ll be hard to move upwards with decent momentum due to overextension.

Sideways action or, in the most bullish case, a slow grind upwards is the order of the day.”

Says Woo in summary,

“BTC is setting up for another break of all-time highs if the capital flow trend continues. It’s a solid long-term setup.

All dips are for buying under the present regime. In the very short term, there are good chances of dips.”

At time of writing, Bitcoin is trading at $93,768, up 11% in the last seven days.

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