{"id":634108,"date":"2024-08-09T07:00:13","date_gmt":"2024-08-09T07:00:13","guid":{"rendered":"https:\/\/shenyangcang.com\/?p=634108"},"modified":"2024-08-08T16:26:09","modified_gmt":"2024-08-08T16:26:09","slug":"bitcoin-nvt-golden-cross-gives-bottom-2-times","status":"publish","type":"post","link":"https:\/\/shenyangcang.com\/bitcoin-news\/bitcoin-nvt-golden-cross-gives-bottom-2-times\/","title":{"rendered":"Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times"},"content":{"rendered":"

On-chain data shows that the Bitcoin Network Value to Transactions (NVT) Golden Cross has dipped into the bottom region, which may be bullish for the asset’s price.<\/p>\n

Bitcoin NVT Golden Cross Has Seen A Sharp Decline Recently<\/h2>\n

As\u00a0an analyst in a CryptoQuant Quicktake\u00a0post explained<\/a>, the Bitcoin NVT Golden Cross is giving a bottom signal for the third time in 2024<\/span>. The “NVT ratio<\/a>” is an on-chain metric that keeps track of the ratio between the Bitcoin market cap and transaction volume.<\/p>\n

When the value of this metric is high, it means the asset’s value (that is, the market cap) is high when compared to the network’s ability to transact coins (the transaction volume). Such a trend could imply the BTC price is overvalued.<\/p>\n

Related Reading: XRP Sharks & Whales Push Bags To ATH As Price Rockets 19%<\/a><\/div>\n

On the other hand, the low indicator suggests the market cap is low compared to the transfer volume, so the cryptocurrency’s price could have room for growth.<\/p>\n

In the context of the current topic, a modified version of the NVT ratio is the actual indicator of relevance: the NVT Golden Cross<\/a>. This metric compares the short-term trend of the metric with its long-term one to determine the appearances of local tops and bottoms in the NVT ratio.<\/p>\n

More particularly, the 10-day moving average (MA) stands for the short-term trend and the 30-day MA for the long-term. Now, here is a chart that shows the trend in the Bitcoin NVT Golden Cross over the over the past few months:<\/p>\n

\"Bitcoin
The value of the metric appears to have seen a sharp decline recently | Source: CryptoQuant<\/a><\/figcaption><\/figure>\n

In the graph, the quant has highlighted the two regions of the NVT Golden Cross that have historically been relevant for cryptocurrency. At values above 2.2, the asset can be assumed to be close to the top, as here, the short-term trend of the NVT ratio has significantly surpassed its long-term one. Similarly, the zone under -1.6 is where bottoms can probably form.<\/p>\n

From the chart, it’s visible that the indicator has observed a plunge recently as the Bitcoin price itself has crashed down. The metric has entered the latter region, suggesting that the coin may have become underpriced.<\/p>\n

This is the third time that the NVT Golden Cross has breached this territory this year, with the first instance occurring back in January, during the price drawdown that had followed the spot exchange-traded fund (ETF)<\/a> approval. This period of the asset being undervalued was followed by a rally towards the new all-time high (ATH).<\/p>\n

Related Reading: Solana (SOL) Jumps 39% From Crash Low, But Is This Rally Sustainable?<\/a><\/div>\n

The second instance of the indicator entering the bottoming zone was last month, with the low paving the way for a rally toward $70,000. Given that both of these occurrences proved bullish for Bitcoin, it remains to be seen where this third one leads.<\/p>\n

BTC Price<\/h2>\n

Bitcoin has furthered its recovery during the past day as its price has now broken back above the $58,200 mark.<\/p>\n

\"Bitcoin
Looks like the BTC price has been going up since the low | Source: BTCUSD on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

On-chain data shows that the Bitcoin Network Value to Transactions (NVT) Golden Cross has dipped into the bottom region, which may be bullish for the asset’s price. Bitcoin NVT Golden Cross Has Seen A Sharp Decline Recently As\u00a0an analyst in a CryptoQuant Quicktake\u00a0post explained, the Bitcoin NVT Golden Cross is giving a bottom signal for the third time in 2024. The “NVT ratio” is an on-chain metric that keeps track of the ratio between the Bitcoin market cap and transaction volume. When the value of this metric is high, it means the asset’s value (that is, the market cap) is high when compared to the network’s ability to transact coins (the transaction volume). Such a trend could imply the BTC price is overvalued. Related Reading: XRP Sharks & Whales Push Bags To ATH As Price Rockets 19% On the other hand, the low indicator suggests the market cap is low compared to the transfer volume, so the cryptocurrency’s price could have room for growth. In the context of the current topic, a modified version of the NVT ratio is the actual indicator of relevance: the NVT Golden Cross. This metric compares the short-term trend of the metric with its long-term one to determine the appearances of local tops and bottoms in the NVT ratio. More particularly, the 10-day moving average (MA) stands for the short-term trend and the 30-day MA for the long-term. Now, here is a chart that shows the trend in the Bitcoin NVT Golden Cross over the over the past few months: In the graph, the quant has highlighted the two regions of the NVT Golden Cross that have historically been relevant for cryptocurrency. At values above 2.2, the asset can be assumed to be close to the top, as here, the short-term trend of the NVT ratio has significantly surpassed its long-term one. Similarly, the zone under -1.6 is where bottoms can probably form. From the chart, it’s visible that the indicator has observed a plunge recently as the Bitcoin price itself has crashed down. The metric has entered the latter region, suggesting that the coin may have become underpriced. This is the third time that the NVT Golden Cross has breached this territory this year, with the first instance occurring back in January, during the price drawdown that had followed the spot exchange-traded fund (ETF) approval. This period of the asset being undervalued was followed by a rally towards the new all-time high (ATH). Related Reading: Solana (SOL) Jumps 39% From Crash Low, But Is This Rally Sustainable? The second instance of the indicator entering the bottoming zone was last month, with the low paving the way for a rally toward $70,000. Given that both of these occurrences proved bullish for Bitcoin, it remains to be seen where this third one leads. BTC Price Bitcoin has furthered its recovery during the past day as its price has now broken back above the $58,200 mark. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":634132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,27251,87427,11680,17260,87452,1144],"class_list":["post-634108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-bottom","tag-bitcoin-bottom-signal","tag-bitcoin-bullish","tag-bitcoin-nvt","tag-bitcoin-nvt-golden-cross","tag-btcusd"],"acf":[],"yoast_head":"\nBitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times<\/title>\n<meta name=\"description\" content=\"On-chain data shows the Bitcoin NVT Golden Cross has dipped into the bottom region, a sign that may be bullish for the asset's price.\" \/>\n<meta name=\"robots\" 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Verma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/shenyangcang.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3d9c67b0b4a94fb480d44f29de96266e?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3d9c67b0b4a94fb480d44f29de96266e?s=96&d=mm&r=g","caption":"Keshav Verma"},"description":"Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/shenyangcang.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times","url":"http:\/\/shenyangcang.com\/bitcoin-news\/bitcoin-nvt-golden-cross-gives-bottom-2-times\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/shenyangcang.com\/bitcoin-news\/bitcoin-nvt-golden-cross-gives-bottom-2-times\/"},"thumbnailUrl":"https:\/\/shenyangcang.com\/wp-content\/uploads\/2024\/08\/btc_dbfb47.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/shenyangcang.com\/wp-content\/uploads\/2024\/08\/btc_dbfb47.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/shenyangcang.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin bottom","bitcoin bottom signal","bitcoin bullish","bitcoin nvt","bitcoin nvt golden cross","btcusd"],"dateCreated":"2024-08-09T07:00:13Z","datePublished":"2024-08-09T07:00:13Z","dateModified":"2024-08-09T07:00:13Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times\",\"url\":\"http:\\\/\\\/shenyangcang.com\\\/bitcoin-news\\\/bitcoin-nvt-golden-cross-gives-bottom-2-times\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/shenyangcang.com\\\/bitcoin-news\\\/bitcoin-nvt-golden-cross-gives-bottom-2-times\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/shenyangcang.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_dbfb47.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/shenyangcang.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_dbfb47.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/shenyangcang.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin bottom\",\"bitcoin bottom signal\",\"bitcoin bullish\",\"bitcoin nvt\",\"bitcoin nvt golden cross\",\"btcusd\"],\"dateCreated\":\"2024-08-09T07:00:13Z\",\"datePublished\":\"2024-08-09T07:00:13Z\",\"dateModified\":\"2024-08-09T07:00:13Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/shenyangcang.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/shenyangcang.com\/wp-content\/uploads\/2024\/08\/btc_dbfb47.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/posts\/634108"}],"collection":[{"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/comments?post=634108"}],"version-history":[{"count":0,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/posts\/634108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/media\/634132"}],"wp:attachment":[{"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/media?parent=634108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/categories?post=634108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shenyangcang.com\/wp-json\/wp\/v2\/tags?post=634108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}