May 21, 2021, | AtoZ Markets – Bitcoin has been known for its show-stopping performances over the last decade, but this week’s frenzy had investors spinning. However, was this week’s price dip a “win” for HODLers? According to on-chain analyst Willy Woo, “BTC is only halfway through its current bull market and the dip in price during this week’s fiasco was good for HODLers!”
During this week, BTC saw dips as high as 30% seeing the crypto asset plunge as low as €31,000 but recovering strongly. The recovery back to $40,000 was the biggest leap in the asset’s history.
“Long range macro indicators like Network Value to Transaction (NVT) Ratio are very healthy” according to Woo. The NVT is a popular metric used to measure profitability for HODLers. Before the dip even occurred the NVT was signaling a buying opportunity of around $42,000.
Currently, the NVT lies at $55,000, this along with stock-to-flow based forecasts of $60,000 suggests an undervaluation for BTC/USD.
A Leverage “Flush Out”
The lost ground is nothing new to the largest crypto asset. Time and time again BTC has proven its resilience. On top of this, the digital asset has additional tools at its disposal, thanks to the shakeout of leveraged traders and low-key effects of the “dogefather” Elon Musk’s negative tweets.
Data from Glassnote suggests that open futures fell from above $17 billion to below $13 billion and have remained at these levels. This data shows just how much leverage was flushed out from the market on the dip and recovery back to $40,000.
Some analysts believe that the dip was all in good time. Woo stated, “newish whales sold big, retail bought even bigger, and coins are becoming more distributed, I will take that as a win”. With some analysts branding this “the shakeout before the breakout”, as the recent lows could be the cleanse before the breakout past $100,0000.
Celebrating the $400 Million Pizza Order
To finish on the lighter side of the coin, May 22nd marks 11 years since legend, Laszlo Hanyecz made the decision to purchase two large pizzas for 10,000 bitcoins, something he considered “a deal”. That deal today, is worth approx. $400,000,000 based on Bitcoin’s current market price of around $40,000.
The crypto enthusiast’s original request was quite explicit, after all when you want good pizza, you ask for it just how you like it, right? So, he posted his request on Bitcointalk and waited for a response. This exchange took four days to take place as many of the initial respondents were unable to make the exchange. Laszlo not only because the first to acquire a good / service using Bitcoin it paved the way for what unfolded in the next decade. After all, “Give a man a pizza, he will eat for a day; let him buy pizza with bitcoin, it will revolutionize the economy.” As Jercos (Jeremy Sturdivant), the man on the other side of the exchange stated later. Fast forward over a decade and Bitcoin as almost become an “everyday accessory” and its use in the real world has ever expanded. So, now if you jump on the crypto wagon and buy Bitcoin, pizza, however tasty is not the only thing on your shopping list.