According to a Cryptoctive QuickTech post published today, Network Value to Transaction (NVT) Golden Cross suggests that bitcoin (BTC) currently has a high market capitalization while network transactions are low. This has caused concern that the price of BTC can be increased.
Bitcoin is higher at the current price?
In the last seven days, BTC has recorded a decline of 5.5%, trading at a low of $ 80,000 at the time of writing. Earlier this month, the top cryptocurrency hit a potentially local floor to about $ 76,000, which increases the expectations of an upcoming price rally.
However, Cryptoctive Analyst Boriswest has warned that BTC problems may not be eliminated yet. In a Quicktech Post, the analyst commented that the price of bitcoin could continue to fall, based on NVT Golden Cross.
For bin call, NVT Golden Cross is calculated by dividing the market capitalization of an asset by the amount of its network transactions. Reads the post:
A high market cap with low transaction volume suggests that the price of bitcoin can be inflated due to speculative activity. It often leads or indicates a potential pulsback.
Boriswest reported that NVT metric can be used for both short and long -term analysis. The analyst shared the following chart, recommending that investors wait until the indicators go to the green zone before making any purchase decision.
Once NVT indicators enter the green area, it would suggest that the market capitalization of BTC is low, while the amount of network transactions is increasing – a landscape that offers a strong purchase opportunity for investors and traders.
The current status of the NVT indicator said that the price of BTC is likely to continue the pullback. Additionally, analysis suggests that the recent price increase of bitcoins may be powered by manipulation in the market.
To maintain its upper speed in the long run in BTC, there should be a steady increase in the amount of network transactions. Meanwhile, fellow Crypto analyst Ali Martinez’s near -term price of bitcoin is a separate perspective on action.
BTC traders are unlikely to sell at current prices
Today in an X post, Martinez said that BTC traders are currently sitting at an average unrealistic loss of 14.57%. This can discourage them from locking at existing prices and locking them.
Many macroeconomic indicators suggest Possibility Trend Reversal for BTC in the coming weeks or months. For example, Crypto’s Crypto Analyst Master recently Thrown light on This BTC can be on the verge of a rapid upsurge, which is expected to increase the M2 money supply.
Additionally, technical indicators also indicate in a price rally. Recently a famous crypto trader Spinish Outside BTC Bullish is following the ‘megone pattern’. At the time time, BTC trades at $ 83,444, which is 0.8% in the last 24 hours.
Specially displayed image from Unsplash.com, Cryptoquant, X and TradingView.com
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