Bitcoin, the first and largest cryptocurrency by market capitalization, recently surpassed $95,000 as the market reclaimed key levels. Bitcoin advanced above $90,000 for the first time since early March, reaching highs of $95,976 on April 25 in a seven-day rally.

Amid the recent rise, BTC fundamentals have turned bullish, according to crypto analyst Willy Woo, which might be a good setup for the cryptocurrency to reach new highs. Woo stated in a recent tweet that capital flows into the network are increasing, but total and speculative flows have bottomed. The analyst indicated that when both align, they combine to create a bullish environment based on solid fundamentals.

Woo also stated that the risk model indicator has begun to trend back down, implying that liquidity may be returning to the market. In this environment, downside pullbacks are expected to be muted.

While medium-term targets of $90,000 and $93,000 have been taken out tactically, Woo stated that the $108,000 target remains in play with a new interim target of $103,000 forming.

Potential scenarios

While Woo predicts the $108,000 target for Bitcoin, he, however, highlighted the possibility of sideways action or a slow grind upward in the coming days, citing a short-term BTC indicator.

Woo observed that the short-term on-chain VWAP indicator is at +3 standard deviations, implying that it may be hard to move upward with decent momentum due to overextension. The analyst added that sideways movement, or, in the most bullish case, a slow grind upward, might be "the order of the day."

At the time of writing, Bitcoin was down 0.48% in the last 24 hours to $94,191, as the market saw profit-taking in the early Sunday session.

Despite the current profit-taking, Woo predicted that BTC could be poised for another all-time high if the capital flow trend continues; however, this is a solid long-term setup. Bitcoin reached its current all-time high of $109,114 in January. In the very short term, "there's good chances of dips," Woo stated.