Fun

Bitcoin NVT Golden Cross Signals ‘Local Bottom’ — What’s Next?

News Feed - 2024-11-17 12:11:03

Este artículo también está disponible en español.


According to the latest on-chain data, the Bitcoin Network Value to Transactions (NVT) Golden Cross has fallen into a crucial region. What could this mean for the price of the premier cryptocurrency? What Does The Falling NVT Golden Cross Mean For Price?


In a recent Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Burakkesmeci revealed that the price of Bitcoin might have reached a “local bottom.” This exciting prognosis is based on the latest movement by the “NVT Golden Cross” metric.


For context, the “Network Value to Transactions” ratio is an on-chain indicator that estimates the difference between the Bitcoin market capitalization and transaction volume. Typically, a high NVT value signals that an asset’s price is high compared to the network’s transaction volume, suggesting that the coin is overvalued. Related Reading BNB Price Poised for Takeoff: Will It Be The Next to Rally? 1 day ago


Conversely, when the value of the NVT metric is low, it implies that the coin’s market value is small relative to the transaction volume. Usually, this indicates that the asset is undervalued and its price could still have room for upside movement.


Now, the Golden Cross indicator is a modified iteration of the NVT ratio, and it helps to mark gradual buy and sell zones in short-term trends. According to Burakkesmeci explained that when the NVT GC exceeds 2.2 (the red zone), it means that the price in a short-term trend is overheating (and the formation of a potential local top).


On the other hand, the NVT Golden Cross dipping below -1.6 suggests that the price decline is wearing out, signaling a potential bottom. Burakkesmeci noted that these local tops and bottoms are regions rather than just precise levels. Source: CryptoQuant


As shown in the chart above, the NVT Golden Cross has crossed beneath -1.6 and is currently around -3.3, suggesting that the Bitcoin price is at a local bottom. According to the CryptoQuant analyst, this could represent a “gradual buying opportunity” for investors looking to get into the market. Bitcoin Market In Extreme Greed


Investors will want to proceed with caution especially as the Bitcoin market seems to be overheating in the long term. According to another CryptoQuant analyst, the Fear & Greed Index has flagged extreme greed for the premier cryptocurrency. Source: Maartunn/X


Typically, when the Fear & Greed Index moves toward one end, there is a potential for market reversal depending on the sentiment. In this case, where the market is in extreme greed, the Bitcoin price may be about to witness a correction. Related Reading XRP Price Rockets Upward: Bulls Poised for More Gains 1 day ago


As of this writing, the price of BTC sits just beneath $91,000, reflecting a 3% increase in the past day. According to CoinGecko data, the market leader is up by an impressive 19% in the last seven days. The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from iStock, chart from TradingView

News Feed

Gareth Jenkinson10 hours agoCBDC frameworks must guard user privacy, monetary freedom — BIS chiefBIS general manager Agustín Carstens stresses the importance of legal frameworks that protect CBDC users’ privacy and
Argo Blockchain Purchases 20K Miners From Bitmain for Future Mining Center in Texas
Argo Blockchain Purchases 20K Miners From Bitmain for Future Mining Center in Texas Argo Blockchain, a London-based cryptocurrency mining company, has announced an expansion of its
Venezuelan Buys Apartment Using Tether as Real Estate Market Warms Up to Crypto
Venezuelan Buys Apartment Using Tether as Real Estate Market Warms Up to Crypto A Venezuelan individual has reportedly purchased an apartment using cryptocurrenc
Latam Based Cryptocurrency Exchange Ripio Expands to US
Latam Based Cryptocurrency Exchange Ripio Expands to US Ripio, an Argentina-based cryptocurrency exchange, has announced that it will expand its operations to the U.S. The company,
Tom Mitchelhill6 hours ago‘Strap yourselves in’ — Bull market coming early 2024, say crypto exchange headsThe heads of Australia’s largest crypto exchanges say a bull run is coming early next year; others say it
Warren Buffett has Enough Spare Cash to Buy Two-Thirds of All Existing Bitcoin
Warren Buffett isn’t much of a bitcoin fan. He’s called it rat poison squared, a gambling device, delusional, and a seashell with no inherent value. But, if he wanted
Nigerian activist receives local support in legal fight to use crypto
Amaka Nwaokocha11 hours agoNigerian activist receives local support in legal fight to use cryptoThis lawsuit comes amid the Nigerian government’s increasingly hostile stance toward cryptocurrencies.1952 Total views14 T
Zhiyuan Sun5 hours agoHong Kong Stock Exchange launches settlement platform powered by smart contractsDubbed “Synapse,” the platform will accelerate trades placed by international investors for Mainland Chinese stock
Sichuan Should Work to Remain Attractive to Crypto Mining: Policy Advisor
China’s Sichuan province – a major bitcoin mining hub – should further study how to remain attractive to the crypto industry, according to a local politician. As reported
William Suberg8 hours agoBitcoin traders earmark key BTC price levels as $34K struggles to holdBTC price is seeking retests of lower levels after Bitcoin bulls fail to push beyond recent 17-month highs.2255 Total views26
Biggest Movers: DOGE Extends Declines on Thursday, Falling by Nearly 9%
Biggest Movers: DOGE Extends Declines on Thursday, Falling by Nearly 9% Dogecoin was one of Thursday’s biggest movers, as the meme coin fell by as much as 9%. The decline co
Trump indicates he might be tolerant of cryptocurrency if elected
Derek Andersen7 hours agoTrump indicates he might be tolerant of cryptocurrency if electedBuyers of his branded sneakers paid a lot of money for them, sometimes in crypto, the former president observed.6579 Total views3