Willy Woo: NVT Signal Confirms Bitcoin Shorting Opportunity, Little Possibility for $5,000 BTC/USD
According to the Network Valuation indicator, the price is expected to take a hit.
Crypto analyst, Willy Woo, who introduced this tool that is based on the value flowing through the blockchain took to Twitter to share the confirmation by NVT of a shorting opportunity in the multi-week price action.
“NVTS trend line break confirmed for a shorting opportunity (For long range multi-week price action)”
1/ Update: NVTS trend line break confirmed for a shorting opportunity. (For long range multi-week price action) https://t.co/0DyaStK2JA
— Willy Woo (@woonomic) March 26, 2019
He further shared that NVTS is currently overbought as it goes above the 150 level that combined with the realized price resistance looming overhead at $4,320, the chances of Bitcoin making a break for $5k are very low.
“The most probable path is back down to retest prior supports in the mid-3k range in April,” added Woo.
Bitcoin NVT Signal, Source: Woobull.com
In the Long Term, $55k a Real Possibility
At the time of writing, Bitcoin has been trading at $4,055 with 2.46 percent gains in the past 24-hours as per Coinmarketcap. However, in the long term according to crypto analyst PlanB, Bitcoin is aiming for $55,000 and a market value of $1 trillion after the halving in May 2020 as per the relationship between stock-to-flow and market value.
In his analysis, based on scarcity, he works on finding the value of the top cryptocurrency in the future. What adds confidence to this model is gold and silver that are in line with the Bitcoin model value for SF.
While gold has the highest SF at 62, it is followed by Silver with SF at 22, Bitcoin with its current stock of 17.5 million coins and supply of 0.7m/yr gives SF 25. At the peak of the bull market in December 2017, Bitcoin SF was 22, very close to silver.
He further gives the answer to the question, where all the money for $1 trillion market value would come from? This, he says will come from gold, silver, countries with “predatory governments” such as Venezuela, Iran, Turkey, China and others, and those countries as well that have negative interest rate like Japan, Europe, and the US soon.
It also includes millionaires and billionaires who are hedging against quantitative easing (QE) along with institutional investors who are discovering an asset that has been the best performing for the last 10 years.