Bitcoin
BTC$60 907.24

2.74%

Ethereum
ETH$3 249.66

1.95%

Tether
USDT$1.000483

0.01%

Binance Coin
BNB$545.47

2.44%

Solana
SOL$147.48

3.98%

USD Coin
USDC$1.000054

-0.01%

Bitcoin bull market still halfway after $30K BTC price crash destroys leverage


21 May 2021

#Bitcoin

The classic end of a Bitcoin bull run, a "mania top," has not appeared yet, while fundamentals are unchanged in their outlook, says Willy Woo. Bitcoin (BTC) is still "halfway" through its current bull market and this week's price dip turned out to be a "win" for hodlers, according to on-chain analyst Willy Woo.

In the latest edition of his market updates which he made publicly accessible, the popular statistician outlined multiple factors which all suggest that Bitcoin is anything but bearish.

BTC/USD recovered strongly after hitting lows of $30,000 on Wednesday, preserving its gains after the sharpest recovery in its history. 

"Are we in a bull market? Long range macro indicators like NVT ratio are very healthy, that remains unchanged," Woo wrote. "So yes, this is not a mania top which all BTC bull markets end in, price is BELOW fundamentals, not above it. We are still halfway."

NVT, or network value to transaction ratio, is a popular metric which aims at identifying profitability among hodlers. As Cointelegraph reported earlier this week, even before the dip, NVT was signalling a buying opportunity at price levels around $42,000. NVT price, which Woo calls an "organic" valuation of Bitcoin, still lies at $55,000, which along with stock-to-flow based projections of $60,000 suggests that BTC/USD is considerably undervalued.

The largest cryptocurrency may already have the tools it needs to regain its lost ground — thanks to a shakeout of leveraged traders and the now muted effects of Elon Musk tweeting negative comments. In fact, the dip may have been just what Bitcoin needed.

"Newish whales dumped out, retail bought a chunk of the dip, coins getting more distributed, I'll take that as a win," Woo added.

Notably, the sharp drop to $30,000 resulted in Bitcoin funding rates flipping negative across the board to record lows, which could provide fuel for a massive short squeeze.  

"That cleanse set up Bitcoin for $100k. Funding rates largely reset," commented Messari analyst Mira Christanto on the latest Bitcoin funding rate data. She added: "The shakeout before the breakout."

$4 billion irrational trades disappear

On the topic of a trader shakeout, fresh data from Glassnode shows just how much leverage was flushed from the market on the to $30,000 and back to $40,000. Over the course of the day, open interest in Bitcoin futures fell from above $17 billion to below $13 billion and stayed at those levels. "Goodbye leverage," analyst William Clemente commented on the figures.

For new buyers entering the space, Blockstream CEO Adam Back meanwhile had some cautionary words. "Thoughts on leverage. *don't*!" he summarized in a series of tweets. "Better just hodl, dca, cold store. if you're gonna use leverage for fun/profit, you're increasing risk a lot. do it with max 10% of coins (or less). never place a leverage trade without a limit stop, or implicit stop from small position liquidation."


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.4% 48 $60 907.24 2.74% 7.95% $1 201 110 545 769 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 74% 47 $3 249.66 1.95% 10.59% $390 660 724 581 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $1.000483 0.01% 0.06% $112 521 291 389 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78.4% 45 $545.47 2.44% 10.66% $80 502 405 442 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 83.6% 28 $147.48 3.98% 10.54% $68 439 891 003 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $1.000054 -0.01% 0.01% $33 955 441 106 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 81.2% 29 $0.529085 0.59% 25.61% $29 525 795 272 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 85.2% 21 $7.39 1.21% 3.73% $18 514 454 508 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 75.6% 49 $0.115147 2.08% 10.19% $16 709 822 671 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 78.8% 36 $0.433919 -1.12% 24.20% $15 569 472 122 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 80.8% 37 $0.137615 -1.83% 10.19% $11 989 577 434 TRX 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 76% 44 $26.45 1.86% 2.73% $10 436 162 041 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 81.2% 35 $0.000018 1.88% 12.93% $10 321 337 154 SHIB 7 days price change
14 Lido stETH (STETH) STETH Lido stETH predictions 94.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 92% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.