Bitcoin ‘price will follow,’ says analyst after historically accurate metric hits new high
Bitcoin (BTC) has already hit an all-time high this week, according to one price measurement from popular statistician Willy Woo.
In a series of tweets on Oct. 27, Woo added to his recent bullish prognoses on Bitcoin, noting that one valuation of BTC/USD was now higher than ever before.
Woo: “Price will follow” NVT valuation
Woo was referring to Bitcoin’s network value to transactions (NVT) ratio, which aims to suggest when the Bitcoin network is overvalued compared to the actual value of transactions passing through it.
As of Tuesday, Bitcoin’s “organic valuation” based on NVT had crossed $10,000 for the first time.
“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,” Woo commented.
“Price will follow.”Bitcoin NVT price chart showing all-time high. Source: Willy Woo/Twitter
BTC challenges $14,000 final resistance
The observation came as BTC price action showed no signs of bearish corrections, rising to highs of $13,850 on Oct. 28 — matching the peak of the 2019 bull run.
As Cointelegraph reported, analysts continue to eye relatively little resistance between $14,000 and Bitcoin’s all-time high of $20,000. Should the $14,000 level break, they argue, the door is open to fresh highs.
“In markets when all-time-highs are breached, 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,’” Woo added.
Among those sensing new all-time highs before the end of the year are Gemini exchange co-founder Tyler Winklevoss and Real Vision CEO Raoul Pal, the latter giving a maximum timeframe of early 2021 for the event to occur.
At press time, Bitcoin traded at around $13,630, having momentarily fallen to $13,480 before recovering.