When traders see a BTC price below $60k, the Bitcoin metric calls it a ‘local bottom’
Bitcoin (BTC) is signaling a third “local bottom” in 2024 as the leading BTC price gauge sees room for growth.
On August 8, a new study from onchain analytics platform CryptoQuant shows high activity from the Network Value to Transaction Golden Cross (NVT-GC) tool.
BTC price is “excessively cooling.
Bitcoin has warned of another breakout in BTC/USD this week as moving averages produce a so-called “death cross”.
However, the long-term picture is unclear as other market indicators call for a sustained rebound.
Among them, NVT-GC is a dynamic metric similar to Bollinger Bands defined by CryptoQuant.
NVT compares Bitcoin's market value to the value of transactions over a specific time frame, and the Golden Cross version compares long-term and short-term NVT values.
The result is a draft guideline for the upper and lower part of the domestic market, and three such lower marks have been prepared in 2024.
“If NVT GC rises above 2.2 points (red zone), it indicates that the price has exceeded the short-term trend and we are at the top of the area,” CryptoQuant promoter Burakkesmeci explained in one of the Quicktake blog posts.
“On the other hand, if NVT GC falls below -1.6 points (green zone), it indicates that the price is overcooling and we are at the bottom of the area.”
Burakkesmeci said that the two earlier downgrades, which occurred on January 18 and July 12, were followed by BTC price gains of 78% and 23%, respectively.
“Currently we are at the bottom of the area according to NVT GC,” he concluded.
“Can the price go deeper? Yes, but we can expect the short-term trend in this area to turn positive.”
Bitcoin traders will see the $60K support fail.
Data from Cointelegraph Markets Pro and TradingView confirms that Bitcoin was trading around $60,000 for most of the weekend.
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Although it held support in “out of hours” trading, BTC/USD did not convince everyone, some prominent traders saw the possibility of a new dive.
Uploading a chart showing X key levels, Crypto Tony asked for a return to $58,300.
“Maybe one more retest of the lows before a full reversal,” blockchain technology expert Elja Boom continued in his latest X opinion piece, comparing the current price action to a year ago when BTC/USD briefly dropped to $25,000.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
