Bitcoin NVT Golden Cross Is Showing A Green Signal
On-chain data shows that the Bitcoin NVT ratio is currently flashing a buy signal, indicating that the bottom for the asset’s price might now be in. The NVT ratio measures the ratio between the Bitcoin market cap and transaction volume. High values suggest that the price is overvalued, while low values indicate that the price may be undervalued. In this case, the NVT Golden Cross, a modified form of the NVT ratio, is of interest. This indicator compares the 30-day moving average with the 10-day moving average to identify tops and bottoms. Currently, the NVT Golden Cross is deep inside the negative territory, suggesting that Bitcoin may be undervalued. Historical data shows that when the indicator dipped below a certain level, it marked a low point for the price.
Key Points:
- The Bitcoin NVT ratio is currently flashing a buy signal.
- The NVT ratio measures the ratio between the Bitcoin market cap and transaction volume.
- High values suggest that the price is overvalued, while low values indicate that the price may be undervalued.
- The NVT Golden Cross compares the 30-day moving average with the 10-day moving average to identify tops and bottoms.
- The indicator is currently deep inside the negative territory, suggesting that Bitcoin may be undervalued.
Hot Take:
Based on the NVT Golden Cross indicator, it appears that the bottom for Bitcoin’s price may be near or may have already been reached. This suggests that the cryptocurrency may be undervalued at the current price level. However, it’s uncertain what scenario might play out this time. As of now, Bitcoin is trading at around $26,500, down 7% in the last week.
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