Bitcoin NVT Golden Cross Hits 60-Day Low: Is This Bullish?
Data on the chain show that the Bitcoin network transaction value (NVT) Golden Cross has recently fallen sharply. What may mean for the price of BTC.
Bitcoin NVT Gold Cross recently fell into the bottom area
As an analyst explained in Cryptoquant Quicktake postalRecently, the BTC NVT golden fork has fallen to the lowest level in two months. this”Not applicable ratio“It refers to the index that tracks the ratio between the market value and transaction volume of Bitcoin.
When the value of this indicator is high, it means that the value of the network (that is, the market value) is higher than the ability (transaction volume) of its trading tokens. This trend means that the asset may be overestimated.
On the other hand, the lower indicator indicates that cryptocurrencies may be due to the hedging rebound because its transaction volume is higher than its market value.
In the context of the current theme, the normal version of the NVT ratio is not interesting, but a modification form called the NVT ratio Non -applicable gold crossEssence This indicator compares the short -term trend of the NVT ratio with its long -term trend to determine whether its value is close to the top or bottom.
The NVT Golden CROSS uses the NVT ratio of 10 -day mobile average (MA) to track short -term trends and use the 30 -day mobile average to track long -term trends.
Now, the chart below shows the trend of Bitcoin NVT gold crossing in the past few months:
In the chart, quantitative experts highlight the two areas related to Bitcoin NVT Golden Cross in history. The red area is located above the 2.2 value. It is the indicator that is most likely to return to the area where the average zero level is most.
Similarly, the green area corresponding to the value below-1.6 is where the indicator tends to form the bottom. As the color coding has been implied, entering these areas usually means bullishness and losses of BTC.
It can be clearly seen from the chart that the NVT Golden Cross soared to the overheated area near the top of the price last month. Since then, the indicator has gradually fallen, and now its value has found that it has fallen into an underestimated area.
The current value -2.21 is the lowest value within 60 days of the indicator. Considering the historical model, this may mean that Bitcoin may be close Local bottomIf you haven’t joined yet.
Bitcoin price
In the past few days, Bitcoin has entered a horizontal fluctuation stage, and its price is still trading near the $ 105,200 mark.
