Originally published on: August 11, 2024
Bitcoin traders are closely watching the latest signal from the network value to transaction golden cross (NVT-GC) indicator, hinting at a possible “local bottom” for the cryptocurrency.
Recent research from CryptoQuant, a leading onchain analytics platform, has revealed positive movements in the NVT-GC metric, suggesting room for growth in Bitcoin’s price.
While Bitcoin has faced warnings of a looming breakdown with a “death cross” forming in moving averages, the overall market sentiment remains optimistic, pointing towards a potential rebound.
The NVT-GC metric, described as a volatility gauge similar to Bollinger Bands, compares Bitcoin’s market cap to the value of transactions within a specific timeframe. The Golden Cross version of this indicator juxtaposes long-term and short-term NVT values to identify local market tops and bottoms.
In 2024, the NVT-GC signal has indicated three local bottom formations, with previous signals resulting in significant BTC price gains of 78% and 23%.
Currently hovering around $60,000, Bitcoin’s price has remained relatively stable, showcasing resilience during weekend trading sessions.
Despite this, some traders remain cautious, anticipating a potential dip in prices. Crypto Tony and Elja Boom have shared insights suggesting a retest of lower levels, with a possible return to $58,300 before a full reversal.
It’s important to note that this article does not offer investment advice. Readers are advised to conduct their own research and analysis before making any financial decisions. Stay informed with critical insights on investment opportunities and trading strategies by subscribing to the Markets Outlook newsletter.