Well-known on-chain analyst Willy Woo says there is a signal that Bitcoin is preparing for a surge.

He told his 831,000 Twitter followers that Bitcoin’s NVT (Network Value per Transaction) is at a point that has led to major rallies in the past.

NVT is a calculated ratio between the market capitalization of Bitcoin and the transaction volume on the Bitcoin network. Based on this metric, Woo says:

“The NVT rate will be adjusted back to the middle range.

The price is no longer too hot. Bitcoin is currently in a bull market, historically this is the zone that led to a big boom. “

The source: Willy Woo / Twitter

As for the long-term outlook, the analyst also has another bullish indicator for Bitcoin in mind. Woo suggests that Bitcoin’s market capitalization correlates with the total supply of US dollars (M2). Based on Woo’s chart, Bitcoin will continue to rise if the supply of USD increases.

“BTC and USD (M2) are a global monetary base. It will be really interesting in the next five years. “

The source: Willy Woo / Twitter

Recently Woo cried Call a big rally in the fourth quarter for Bitcoin and a slightly different market cycle than the previous ones, possibly extending into 2022.

“No matter what happens in the next few weeks, I expect Bitcoin to see a strong rally later this year. The fourth quarter is going to be great and could last until the end of the first quarter of next year.

I don’t hesitate to say that I think this is going to happen and I don’t think it’s a risky call. I think it’s pretty solid when you look at the on-chain metrics. “

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According to Dailyhodl

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