Near-term bulls have an opinion that the cryptomarket might be ready for a proper rally on the upside, citing steady growth of BTC cryptotrading volumes and transaction rates.
Willy Woo, a prominent digital currency researcher and analyst claims that there is no place for such high hopes. On his Twitter account, Woo points out that the on-chain trading volumes are simply too small to ensure a prolonged rally. He refers to the instability as one of the key reasons of the on-chain volume growth witnessed over the past weeks.
Trading volumes have shortened to normal amounts. The NVT chart is on the high side, meaning that the price that is currently transmitted on the network is lower than the valuation of the network itself.
The NVT ratio is a metric designed by Willy Woo himself, and it provides a rather good insight. It performs an estimation of the intrinsic values of digital currencies, providing financiers with the knowledge of when the BTC value is extremely high or extremely low.
Woo was the analyst responsible for the forecast of a bearish bias back in last November. He pointed that the downward pressure on Bitcoin might continue until summer of 2019. He referred to the data provided by the NVT, which, per Woo, had performed a breakout below its support levels, and therefore summed up that BTC was not likely to perform a breakout above its 200 DMA.
At the time of writing, BTC is trading at 3,645 on Coinbase, with the overall market cap at 132 billion USD. It has significant support around the said levels.
Presently, in spite of the more or less stable past couple of weeks displayed by most of the digital currencies, the cryptomarket remains down by approximately 43% from its November levels.
The high instability and fluctuations of the BTC value both lure in new financiers and push away the old ones. The cryptomarket has always been full of surprises, and even though Willy Woo is more often right than wrong, some wonders may still happen.