The Bitcoin Golden Cross (Network Value per Transactions, or NVT) is at a current level which could be indicative of BTC being under-priced.
Bitcoin NVT Golden Cross Was Recently Found in Oversold Area
According to an analyst who appeared in a CryptoQuant Quicktake post. The cryptocurrency may enter a recovery stage based on NVT Golden Cross. The “NVT ratio” is an indicator that keeps track of the ratio between the Bitcoin market cap and the network’s transaction volume (both in USD).
When the value of this metric is high, it means that the cryptocurrency’s value (that is, its market cap) is high compared to its ability to transact coins (the transaction volume). This could indicate that the asset’s price is too high.
On the other hand, the indicator assuming a low value implies the market cap isn’t overinflated compared to the transaction volume, so the coin could have room to see a surge.
In the context of the current topic, the NVT ratio itself isn’t of interest, but rather a modified version called the NVT Golden Cross. This metric compares the NVT ratio’s short-term trend against its long-term trend to identify the indicator’s tops and bottoms.
The 30-day MA represents the longer-term trends, while the 10-day MA is the trend for the short term. This chart shows how the NVT Golden Cross has changed over the years.
The quant highlighted in the graph two historical important regions of the Bitcoin NVT Golden Cross. If the asset is above the 2.2 level, it may be overvalued. It could also need a corrective action.
In the same way, it is below the line of -1,6 that the bottoms occur, because the coin here becomes overpriced. The chart shows that the indicator’s value has recently declined in this latter zone.
When the NVT Golden Cross was last in this zone, it was at the time of the subsequent market decline. spot exchange-traded fund (ETF) The approval was given at the start the year. This drop was succeeded by the cryptocurrency’s rally towards a new all-time high (ATH).
Thus, it’s possible that Bitcoin could also end up enjoying a rally this time. This surge could have begun already, because the coin’s price has risen above the $64,000 mark since it plunged below $54,000.
Even with this rally the NVT Golden Cross is still at -1.8 and in the low value zone. According to this indicator, there is still room for the market to grow.
BTC Price
Bitcoin’s price is currently around $64,900. This represents a 13% increase in just the last week.
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Source: www.newsbtc.com
