On-chain annotator Willy Woo asserted that Bitcoin (BTC) would suspension above the $42,000-resistance level in its coming attempts.

The researcher based his bullish analogy on the and so-chosen Rick Astley indicator, a heat-map that tracks investors—the Rick Astleys of this world—that buy Bitcoin to hold the asset for longer timeframes.

The indicator earlier predicted Bitcoin cost spikes based on investors' buying activity beneath certain technical resistance levels.

Investors' purchase-and-hold habits tracked using Bitcoin on-chain estrus map. Source: Willy Woo

However, Woo noted that the "strong-handed long term investors are absorbing" the Bitcoin supply below $42,000, which raises the cryptocurrency's prospects of closing above the level.

90 solar day moving boilerplate of Bitcoin moving to Rick Astley most to cross bullish. Source: Willy Woo, Glassnode

"Strong HODLers have been taking this opportunity to scoop large amounts of coinage while we're under the resistance ceiling," tweeted Woo.

The statements came a mean solar day afterwards Bitcoin reclaimed its psychological resistance level of $forty,000 as support.

BTC sustained higher up the price floor on Friday despite looming profit-taking sentiment. It established an intraday high of $41,191 earlier correcting lower to $40,360, as of 12:05 UTC.

Bitcoin's upside prospects looked limited due to its tendency to reject bullish breakout attempts above the $40,000-$42,000 area. In detail, the BTC/USD exchange rate has made at least 10 attempts to close above the said range subsequently May 19's notorious crypto crash,

Bitcoin stuck below $42,000-resistance level. Source: TradingView.com

Only each time, strong selling pressure effectually the area prompts the BTC/USD rates lower towards the $30,000-$35,000 range.

Supply squeeze underway

Woo'south upside predictions too carried the supply squeeze undertones—a state of affairs wherein the number of available Bitcoin supply falls below its spot market place need, leading to higher bids.

Related: This bullish Bitcoin options strategy targets $50K without risk of liquidation

Woo applied his own "Liquid Supply Shock" indicator to conclude that markets ran out of Bitcoin.

Bitcoin supply shock with respect to its price. Source: Willy Woo

In detail, Liquid Supply Shock is the ratio of coins that traders cannot purchase versus the coins that they can buy. Woo calculates the supply shock by dividing the coins held past strong-handed investors with the coins held by speculative investors.

"Coins are chop-chop disappearing from the available market every bit strong holders go on to lock them away for long-term investment," said Woo, calculation that the supply squeeze could ship Bitcoin to $55,000.

"I've not seen a supply stupor opportunity like this since Q4 2022 when BTC was priced at $10k only to exist repriced at $60k in the months thereafter. Our supply shock is still in play with college prices expected."

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