Data on the chain shows the Bitcoin network value for transactions (NVT) Golden Cross has recently fallen. This is what this could mean for the price of BTC.
Bitcoin NVT Golden Cross was recently deposited in the soil zone
As explained by an analyst in a cryptoquant quicktake afterThe BTC NVT Golden Cross has recently fallen to the lowest level in two months. The “NVT ratio” refers to an indicator that keeps track of the ratio between the Bitcoin market capitalization and the transaction volume.
When the value of this metric is high, it means that the value of the network (that is, market capitalization) is high compared to its ability to handle coins (the transaction volume). Such a trend means that it can be actively overvalued.
On the other hand, the indicator low suggests that the cryptocurrency can be due to a bullish rebound because the volume is high compared to market capitalization.
In the context of the current subject, the normal version of the NVT ratio is not important, but rather a modified form that is known as the NVT Golden Cross. This metric compares the short-term trend of the NVT ratio with its long-term to determine whether its value is close to an up or bottom.
The NVT Golden Cross uses the 10-day advancing average (MA) of the NVT ratio to follow short-term trends and the 30-day MA for long-term.
Now here is a graph that shows the trend in the Bitcoin N / A Golden Cross in recent months:
In the graph, the Quant emphasized two zones that have traditionally been relevant to the Bitcoin NVT Golden Cross. The red zone, located above a value of 2.2, is where the indicator most likely has seen a reversal to the average zero level.
Similarly, the green zone that corresponds to values below -1.6 where the soils in the metric tend to form. As the color coding already means, companies in these zones often mean a bullish and bearish rise to BTC.
It is clear from the graph that the NVT Golden Cross rose in the overheated area around the time of last month’s price. Since then, the indicator has gradually found its way, with its value today that is under water in the undervalued area.
The current value of -2.21 is the lowest that the metric has been in about 60 days. Given the historical pattern, it is possible that this could mean that Bitcoin can be near a local soil if one is not yet in it.
BTC price
Bitcoin has settled in a phase of lateral movement in recent days, because the price still acts around $ 105,200.