NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

The Bitcoin Bull Run Ended Before It Began Says Analyst, is Big Fall Likely?

Samuel Wan
Samuel Wan
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Last week, the Bitcoin price peaked at around $9,100. Since then, it, along with the rest of the market, has been in decline. The question on everyone’s lips is, what will happen next? Renowned analyst, Willy Woo, on analyzing the Network Value to Transactions (NVT) ratio found a significant divergence between price and organic investor flow.

Several explanations have been put forward. But regardless of the reason(s), some see this as an indicator the bull run is over.

Presently the market price of BTC has outstripped organic investor flow unseen since the bull market mania phases of 2013 and 2017. Never before have we seen such a divergence so early in the bull market. pic.twitter.com/S3rfBKdlzL

— Willy Woo (@woonomic) June 6, 2019

What Is NVT?

The NVT is a metric to gauge value in crypto assets. It’s simply the ratio of the Market Cap divided by the volume transmitted by the blockchain. On explaining how to read NVT, Willy Woo said:

“When Bitcoin’s NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network. This can happen when the network is high growth and investors are valuing it as a high return investment. Or alternatively when the price is in an unsustainable bubble.”

Also, volume through the blockchain should not be thought of as payments. This is because Bitcoin is considered a store of value network, to which volume flowing through the network reflects investor flows. More investment activity creates more volume, and when this volume dries up, NVT moves higher than normal.

What Will Happen To The Bitcoin Price?

Woo’s tweet highlighted a significant difference between the Bitcoin price and investor flow. By establishing that volume flows are as expected, he concluded that this is the result of bots shorting the Bitcoin price. He said:

“With on-chain investor volumes in the normal range, the only explanation is from short term trade activity on the exchanges. This is a quant fund driven short squeeze devoid of any true investor volume.”

On predicting what will happen next, Woo is anticipating an end to quant fund trading, which will bring a further pullback in price. Real investors will then step in, at which point, the true bull market can begin.

I'm awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.

— Willy Woo (@woonomic) June 6, 2019

End Of The Bull Run?

Interestingly, Woo’s original tweet highlighted a level of divergence not seen since 2013 and 2017 bull runs. If taken at face value, this would imply the recent run of late was the peak.

The bitcoin price is in decline
The bitcoin price is in decline after a month of strong gains (source: coinmarketcap.com)

Josh Rager believes if the Bitcoin price struggles to stay within the high $7,000s, there is a strong possibility of a significant pullback. He said:

“People have asked if that was short term sell off and the price is heading back up. Due to the amount of volume, it’s more likely price has short term relief that can last hours or days before another push down to retest support. Price action isn’t a straight line :).”

How Accurate Is NVT?

The coming days will prove critical for Bitcoin, and the rest of the markets. And while the worst is expected, it’s also mindful to realize indicators, whether NVT ratio, RSI, MACD, etc, all have shortcomings. This is because they can never account for all of the factors involved with price movement.

In the case of NVT ratio, Dmitry Kalichkin, Chief Research Office at Cryptolab Capital, said:

“There is, however, another more fundamental weakness of NVT. It only takes into account total value of on-chain transactions, but it doesn’t factor in the number of transactions or the number of addresses (wallets) participating in these transactions. Let’s call this metric Daily Active Addresses (DAA).”

With that in mind, it remains to be seen whether the bull run finished before it began.

Tweet123Share232ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum Whale Loads Up: $422M In ETH Bought In Under a Month

Ethereum Whale Loads Up: $422M In ETH Bought In Under a Month

Ethereum has experienced significant volatility in recent days, driven largely by escalating geopolitical tensions in the Middle East. After breaking...

Sebastian Villafuerte 5 hours ago
텍사스, 비트코인 전략 준비금 공식화… BTC 보유 주도주는 어떤 코인?

텍사스, 비트코인 전략 준비금 공식화… BTC 보유 주도주는 어떤 코인?

지난 토요일 텍사스가 비트코인 구매에 공적 자금을 투입하기로 결정했다. 이는 미국 역사상 처음이다. 그렉 애벗(Greg Abbott) 주지사는 상원법안 21호(SB21)에 서명하며...

Soyeon Lee 6 hours ago
Top New Crypto to Explode 100x as Circle Hit $60B Amidst Investor Frenzy

Top Next Crypto to Explode 100x as Circle Hit $60B Amidst Investor Frenzy

This may not always feel like a bull market, with geopolitical tensions boiling over in Iran and Ukraine. Bitcoin has...

Aaron Walker 6 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

$FUN Records 62.4% Price Rise in 24 Hours! Still Gaining on Binance

News BTC 2 hours ago
Bitcoin Buy-Side Pressure Surges: Taker Buy Volume Spikes Sharply

Bitcoin Buy-Side Pressure Surges: Taker Buy Volume Spikes Sharply

Sebastian Villafuerte 2 hours ago
Ethereum

Ethereum Price Crash To $2,100 Triggers Fear, But Why Are Analysts Predicting A Rally To $6,000?

Scott Matherson 3 hours ago

Premium Sponsors

Press Releases

  • Te 4 altcoiny są gotowe do wzrostu

    Te 4 altcoiny są gotowe do wzrostu, nawet jeśli cały...

    13 minutes ago
  • Hlavní předpovědi pro kryptoměny: Cardano, Shiba Inu, Solaxy

    Hlavní předpovědi pro kryptoměny: Cardano, Shiba Inu...

    3 hours ago
  • The top cloud mining platform in 2025: AIXA Miner cloud...

    3 hours ago
  • Tyto 4 altcoiny mají potenciál růstu, i když se...

    3 hours ago
  • Shiba Inu în stil cartoon, reprezentând potențialul criptomonedelor meme de a reveni în trend pe piața cripto din 2025.

    Previziuni de top pentru criptomonede: Cardano, Shiba Inu...

    4 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.