Renowned on-chain analyst Willy Woo predicts that a wave of liquidation is on the horizon once Bitcoin (BTC) reaches $72,000. With a following of 1.1 million on X, Woo reveals that there are $1.5 billion worth of short positions waiting to be liquidated up to $75,000 and beyond, potentially setting a new all-time high.

Woo also 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 assesses whether Bitcoin is undervalued or overvalued by comparing its market capitalization to its realized capitalization. Meanwhile, VWAP provides insight into whether an asset is oversold or overbought based on its intraday price action.

The coin days destroyed metric evaluates the value of each Bitcoin transaction while considering the number of days since the coins were last moved. CVDD tracks the cumulative sum of the coin days destroyed metric relative to the market age. On the other hand, the Sharpe Ratio aims to measure the return of an investment against its risk by dividing a portfolio’s excess returns by its volatility.

According to Woo, the recent 2.5 months of consolidation under bullish demand has been beneficial for Bitcoin, allowing more room for price growth before reaching a peak. The BMO chart indicates a move one level down, suggesting that there are still 2-3 levels to climb before a macro market top is reached.

At the time of writing, BTC is trading at $71,121. For the latest updates, subscribe for email alerts or follow on X, Facebook, and Telegram. Remember to do your own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets, as all transfers and trades are at your own risk. The Daily Hodl does not provide investment advice and is not liable for any losses incurred.