Bitcoin NVT Golden Cross Signals ‘Local Bottom’ — What’s Next?
According to the latest on-chain data, the Bitcoin Network Value Transaction (NVT) Golden Cross has fallen into critical territory. this pair Prices of major cryptocurrencies?
What does a falling NVT Golden Cross mean for price?
In a recent Quicktake post on the CryptoQuant platform, an analyst who goes by the pseudonym Burakkesmeci disclose Bitcoin’s price may have reached a “local bottom.” This exciting prediction is based on the latest developments in the “NVT Golden Cross” indicator.
For context, the Network Value to Volume ratio is an on-chain metric used to estimate the difference between Bitcoin market cap and volume. Typically, a high NVT value indicates that the price of an asset is high compared to network transaction volume, indicating that the token is overvalued.
On the contrary, when the value of the NVT indicator is low, it means that the market value of the token is small relative to the trading volume. Typically, this indicates that the asset is undervalued and that its price still has room to rise.
Now, golden cross indicator A modified version of the NVT ratio, it helps mark progressive buy and sell areas in short-term trends. According to Burakkesmeci, when NVT GC exceeds 2.2 (red zone), it means that the price in the short-term trend is overheating (and forming a potential local top).
On the other hand, the NVT Gold Cross falling below -1.6 indicates that the price decline has ended, signaling a potential bottom. Burakkesmeci points out that these local tops and bottoms are areas, not just precise levels.
As shown in the chart above, NVT Golden Cross has fallen below -1.6 and is currently around -3.3, indicating that Bitcoin Price is at a local bottom. CryptoQuant analysts said this could represent a “step-by-step buying opportunity” for investors looking to enter the market.
The Bitcoin market is extremely greedy
Investors need to exercise caution, especially since the Bitcoin market appears to be overheated in the long term. Another CryptoQuant analyst said that the Fear and Greed Index shows the extreme greed of people towards the major cryptocurrency.
Often, when the Fear and Greed Index moves in one direction, the market may reverse based on sentiment. In this case, where is the market? in extreme greedBitcoin prices may be about to see a correction.
As of this writing, the price of BTC is just under $91,000, up 3% in the past day. According to data from CoinGecko, the market leader is up an impressive 19% in the past seven days.
