Cryptocurrency analyst Willy Woo said the Bitcoin bull rally had not yet reached its peak. Woo compared it to the bull run in 2017.
Willy Woo said the value of Bitcoin NVT premium has not yet reached the bull rally levels of 2017, so the bull run currently taking place has not yet peaked. The analyst explained his analysis, referring to NVT and NVT premium values.
This rally is warm but not yet overheated.
This is how much “speculative premium” we have right now compared to a similar phases of the prior 2 bull markets. pic.twitter.com/cWTUL3Fs9R
– Willy Woo (@woonomic) January 6, 2021
Bitcoin bull rally yet to peak
The NVT (Network Value to Transactions Ratio) value, developed by analyst Willy Woo and Coin metrics, is obtained by dividing the Bitcoin market value by the total USD trading volume on the BTC network. The high value of NVT can be interpreted as a sign that investors are starting to hold the Bitcoin they own, according to woo.
The NVT premium value shown in Woo’s recent analysis is obtained by the ratio of the speculative market price to the market price driven by investors. At this value, Bitcoin is currently in a speculative phase. Willy Woo showed that the value of NVT premium, which he called speculative in its comparison with the previous two bull rallies, had not yet reached the value seen in 2017.
“The rally has not yet peaked,” the analyst said, as the NVT premium value has not yet reached the level in the 2017 bull rally.
Woo commented on the speculative premium value, which ran above normal from 2018 to 2019. At that time, the BitMEX cryptocurrency exchange was leading the rise in crypto derivatives trading, Woo continued:
Later tamed by spot dominance as Michael Saylor lead the charge on spot buying.
Originally published at https://thecryptobasic.com on January 7, 2021.