Bitcoin (BTC) hit an all-time high this week, for one of its price measurement parameters, proving analysts and market enthusiasts right in their recent predictions and speculations. The market has speculated on a BTC price surge for the better part of this year, and it now seems to be taking off.
According to Willy Woo, a popular statistician, Bitcoin’s network value to transactions (NVT) ratio has hit an all-time high. NVT is a price measurement parameter that indicates bitcoin’s organic valuation by comparing the network’s valuation against the actual value of transactions completed on the protocol. Woo took to twitter on Oct. 27 to show that his recent bullish prognoses on Bitcoin was accurate and that valuation of BTC/USD was now higher than ever before through a series of tweets.
While we wait for BTC post an all-time-high, both on the monthly chart of $14k and the 20k prior top. I'll point out that the organic valuation under NVT Price from underlying long term investors is already at an all-time-high. Price will follow. pic.twitter.com/s5uVN5EtM2
— Willy Woo (@woonomic) October 27, 2020
According to Woo’s tweets, Bitcoin price will follow after the organic valuation under NVT price from underlying longtime investors got to an all-time high.
As of Tuesday, the organic valuation of Bitcoin’s network based on this NVT ratio had crossed $10,000 for the first time. The high valuation would therefore affect the price positively.
In markets when all-time-highs are broached, there's no prior history to go back on, so price discovery swings wildly upward exploring different levels as there's no history to say "that's not valid".
— Willy Woo (@woonomic) October 27, 2020
Woo’s observation follows in the wake of BTC price action following a bullish momentum with no signs of bearish corrections in sight. The rise to highs of $13,850 on Oct. 28 matched the peak of the 2019 bull run.
Analysts are now keenly eyeing BTC’s price changes and the little resistance between $14,000 and $20,000, which is the assets all-time high valuation. According to the prevailing market sentiment, if the $14,000 level breaks, the door is open to new highs.
This is in line with Woo’s explanation that there is no prior history for Bitcoin to go back to so the market should expect the price to swing wildly as it rises and explores new levels.
Popular industry figures like Peter Brandt, Tyler Winklevoss, Plan B, and Raoul Pal are also predicting new highs for Bitcoin before the end of year. Their bullish outlook is an indication of the crypto community sentiment with many players remaining positive about the leading cryptocurrency’s price. This was aptly put by Raoul Pal, the Founder/CEO of Global Macro Investor and Real Vision Group through this Oct. 27 tweet
There are literally only two resistances left on the #bitcoin chart – 14,000 and then the old all-time high at 20,000. I fully expect new all-time highs by early next year at the latest.#irresponsiblylong pic.twitter.com/Xhp8qgHrAC
— Raoul Pal (@RaoulGMI) October 27, 2020
These expectations are running around the industry with traders excited about transactions in the network, and others rushing in to buy in a FOMO moment.
Image courtesy of Flickr
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