A”mania top” — the classic end of a Bitcoin bull run — hasn’t appeared yet, and principles are unchanged in their view, ” says Willy Woo.
Bitcoin remains”halfway” by its current bull market, and also this week’s price dip turned out to be a”triumph” for hodlers, based on on-chain analyst Willy Woo.
In the most recent edition of his market upgrades, which he made openly available, the favorite statistician summarized multiple variables that all suggest that Bitcoin (BTC) is anything but bearish.
Woo: BTC cost did not attain”mania high”
BTC/USD recovered after hitting highs of $30,000 on May 19, claiming its profits after the sharpest retrieval in its own history.
“Are we in a bull market? Long range macro indicators such as NVT ratio are extremely healthy, which remains unchanged,” Woo wrote.
“So yes, this is not a mania leading which all BTC bull markets wind in, price is BELOW principles, not over it. We are still halfway.”
NVT, or network-value-to-transaction ratio, is a popular metric that aims at identifying agility among hodlers. As Cointelegraph reported earlier this week, before the dip NVT was indicating a buying opportunity at cost levels around $42,000.
NVT cost, which Woo calls for an”organic” evaluation of Bitcoin, nevertheless lies at $55,000, which along with stock-to-flow-based projections of $60,000 imply that BTC/USD is considerably undervalued.
The most significant cryptocurrency may already have the tools it needs to regain its lost ground, thanks to some shakeout of leveraged traders and the now-muted ramifications of Elon Musk tweeting negative remarks.
In fact, the dip may have been just what Bitcoin wanted.
“Newish whales dumped out, retail purchased a chunk of this dip, coins becoming more dispersed, I will take this as a win,” Woo added.
Especially, the sharp fall to $30,000 led to Bitcoin funding rates turning negative round the board to record lows, which could provide fuel for a huge short squeeze.
“That cleanse setup Bitcoin for $100k. Funding rates mostly reset,” Messari analyst Mira Christanto commented concerning the latest Bitcoin funding rate data. She added:
“The shakeout before the breakout”
$4 billion in irrational trades disappear
On the topic of a dealer shakeout, new data from Glassnode reveals precisely how much leverage was flushed from the marketplace during the drop to $30,000 and the increase back to $40,000.
Within the course of this day, open interest in Bitcoin stocks dropped from over $17 billion to below $13 billion and stayed at those levels.
“Ideas on leverage. *do not *!” He outlined in a series of tweets.
“Better only hodl, dca, cold store. If you are gonna use leverage for fun/profit, you are increasing risk a good deal. Never place a leverage commerce with no limitation stop, or suggested prevent from modest position liquidation.”