Analyst Willy Woo said that Bitcoin’s network value to transaction ratio (NVT) gave the buy signal. Woo, the developer of several Bitcoin indicators, stated that investor movement, which was not reflected in the price, was at record levels.
Especially with the halving in May and the DeFi boom in the summer, crypto coins are experiencing one of their most active periods. With corporate companies now including Bitcoin in their portfolios, experts think that the biggest crypto money is open.
Payment giant PayPal’s latest move also caused these comments to increase. After the company’s announcement, important currencies such as Bitcoin, Ethereum, and Litecoin made serious gains.
Willy Woo, an analyst who participated in the Unconfirmed podcast and commented on Bitcoin’s movement, is also very optimistic about the biggest cryptocurrency… Woo stated that Bitcoin’s network value to transaction ratio (NVT) gave the buy signal and said:
“There is a bubbling in Bitcoin. As this bubbling gets bigger, the rate at which Bitcoin reaches new investors increases. So this rate is the rate of valuation, the market value of the move, and it has created a rate of increase for Bitcoin ”
Woo also stated that investor movement, which was not reflected in the price, was also at record levels. So when you compared the NVT with the Bitcoin price, Woo stated that the biggest cryptocurrency is below its current value and the PayPal statement will be a catalyst for the BTC price moving upward:
“Following the PayPal announcement, we see more movement, so more people are coming. I can see this clearly in the numbers. There are too many people coming. Yes, if you’ve been in the crypto business for at least a year, now is the perfect time to buy. ”
Possibility of correction in the short term
According to Santiment, a company that follows the movements in social networks; There is a situation similar to the movements in the period when Bitcoin reached its peak in 2019. Santiment also notes that he is concerned about the formation of a FOMO movement. For this reason, the company states that when the time comes, profit realization will be the best move, it should not be bought with “Lamborghini dreams talk” and it will be better to make moves with realistic thoughts.
As can be seen in the chart below, after high levels of FOMO sentiment, the market often ends in collapse. The last FOMO time was in September when BTC reached $ 11,400, followed by a hard retracement to $ 10500. Just before that, when there was a $ 12200 movement in August, a FOMO was formed and the BTC price dropped below $ 11900 within 48 hours.
According to the data firm Skew, the number of open positions for CME is also at record levels… As shown in the chart below, the “long” and “short” positions of corporate companies and leveraged funds are at a record level. Skew comments on the subject:
“With the recovery of the market, the underlying transactions are becoming increasingly attractive for hedge funds, which currently yield more than 10 percent returns.”