As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen trends come and go, bull runs and bear markets alike. The current discourse surrounding Bitcoin’s price action has piqued my interest, especially given the insights provided by the CryptoQuant analyst, Burak Kesmeci, regarding the NVT Golden Cross.
Although Bitcoin‘s recent price fluctuations have sparked some uncertainty, it remains a topic of interest among analysts. Today, an analyst from CryptoQuant drew attention to the Bitcoin’s NVT Golden Cross, a significant indicator that is often associated with indicating potential turning points in Bitcoin’s price movement, whether they be local tops or bottoms.
As per analyst Burak Kesmeci’s assessment, this particular metric is causing some worry at present because it’s having trouble exceeding its past high points.
How Is The NVT Golden Cross Signalling a Warning For Bitcoin?
As a crypto investor, I find it beneficial to grasp the significance of the NVT Golden Cross before delving into any discussion about its implications. Essentially, this NVT Golden Cross is a crucial indicator that helps evaluate the well-being of the Bitcoin market.
To find it, we first divide the network’s market capitalization by its daily transaction volume. Then, we apply a moving average to that resulting ratio.
Typically, if the NVT Golden Cross surpasses 2.2 points, it’s often interpreted as a potential peak in the market, whereas dipping below -1.7 points usually suggests a possible trough.
As a crypto investor, I’ve noticed that the NVT Golden Cross, as per the analysis provided by CryptoQuant, has been exhibiting a troubling pattern over the past couple of months. This could potentially indicate a shift in the market dynamics that might require some adjustments to my investment strategy.
1) Historically, when a specific metric doesn’t exceed its past highs, it’s typically seen as a negative indicator. Starting from March 2024, we’ve noticed that the peaks in the NVT Golden Cross have been trending downward.
As a researcher, I’ve been closely monitoring the metric associated with Bitcoin’s price, and here’s the progression I’ve observed: On March 31, it stood at 3.17; on April 29, it dipped to 3.08; on May 27, it dropped further to 2.67; on July 29, it fell to 2.03; and most recently, on August 26, it reached 1.46. Based on this descending trend, I speculate that the current surge in Bitcoin’s price might be starting to wane.
The analyst noted:
As a crypto investor, I’m keeping a close eye on the NVT Golden Cross. For us to reclaim the momentum, this crucial indicator needs to break through its prior high, rallying the bulls in our favor once more.
Outlook On BTC Future
Although the NVT Golden Cross may have raised some concerns, not every analyst is issuing a warning. In fact, notable crypto expert Ash Crypto has presented a more positive perspective on asset X, indicating that recent price drops ought to be seen as part of an overall bullish trend instead.
According to Ash Crypto, it’s crucial for investors to keep their eyes on the long-term Bitcoin chart instead of getting swayed by short-term market fluctuations. He believes that the bull-flag pattern in Bitcoin is still valid, which suggests a continuation of the uptrend. Additionally, he reinforces his optimistic view by referring to global liquidity indicators.
As a crypto investor, I’ve observed that the worldwide money supply (M2) has surpassed its historical peak at $95 trillion. This trend, which historically indicates a strong correlation with Bitcoin’s price increase, has piqued my interest.
BREAKING
GLOBAL LIQUIDITY (M2) REACHED A
NEW ALL-TIME HIGH RECORD OF $95
TRILLION.
BITCOIN ALWAYS FOLLOW GLOBAL
LIQUIDITY, SO BTC TO $125k+ SOON
— Ash Crypto (@Ashcryptoreal) August 29, 2024
Based on his assessment, Bitcoin may hit the $100,000 milestone faster than some predictions suggest, and it could potentially soar even higher, touching around $125,000.
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2024-08-30 02:11