What Does Bitcoin NVT Golden Cross Tell About the Price?
A Bitcoin (BTC) Network Value in Transactions (NVT) golden cross suggests that the cryptocurrency’s recent surge above $93,000 may not mark the top of this cycle. BeInCrypto observed this after analyzing the current status of the indicator.
At press time, BTC was trading at $90,893. Here’s why this slight dip may not last: Instead, Bitcoin’s price could rebound well above its all-time highs.
Data shows Bitcoin remains undervalued
Bitcoin’s NVT Golden Cross is an indicator that helps find tops and buttons in cycles. When the NVT Golden Cross exceeds 2.2 points (red area), it indicates that the short-term price trend is overheated and may indicate a local top.
Conversely, a break below -1.6 points (green zone) signals excessive price cooling, suggesting a possible local bottom. According to CryptoQuant, as of this writing, the indicator is reading -3.25, indicating Bitcoin price still has room to appreciate.
For example, when the indicator was -2.60 in January, BTC was trading below $42,000. About two months later, the coin price continued to rise to $73,000. Therefore, taking into account historical data and the current position of the indicator, BTC could climb to $100,000 by the end of the year.
This outlook is also consistent with the views of analyst Crypto Kaleo. Bitcoin could rise to $100,000, according to Kaleo Attract retail investors to return and could drive up prices.
“I think everyone will be surprised when Bitcoin breaks $100,000 and goes right past it and never looks back. This has been a spiritual milestone for a long time and when it happens it will allow the retail industry to FOMO is in full swing again.” Wrote on X.
Additionally, Glassnode data shows that Bitcoin is currently trading above the realized price for both short-term holders (STH) and long-term holders (LTH). Realized price represents the supply-weighted average price Market participants pay for their coins. It serves as an on-chain indicator of potential support or resistance levels.
Typically, cryptocurrencies face resistance when the realized price is higher than BTC. As a result, prices may struggle to climb. However, as shown above, the realized price of STH is lower than BTC’s value of 69,793, indicating that the price may continue to rise.
BTC Price Prediction: Will the Next Price Be $104,000?
On the 3-day chart, Bitcoin has formed a bullish flag pattern. The Bull Flag is a bullish chart pattern characterized by two bounces with an short term consolidation phase. Flagpoles form during sharp price increases when buyers overwhelm sellers.
What follows is the retracement phase, during which price action forms parallel upper and lower trend lines, forming a flag pattern. Given the current outlook, Bitcoin’s price could rise to $104,228 whenever buying pressure increases.
However, if the Bitcoin NVT Golden Cross reaches extremely high values, this may mark the BTC’s local top. In this case, the price of the token may face a significant correction.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
