Bitcoin NVT Gold Cross is nearing a local bottom

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Crypto analyst Burak Kesmeci recently shared another bullish prediction for Bitcoin (BTC), indicating that the first cryptocurrency may be trending higher for the foreseeable future. Meanwhile, BTC continues to hover around $104,000, showing no significant movement over the past day following a robust price rebound last week.

Bitcoin NVT Gold Cross is approaching the local bottom, the price uptrend is secured

IN post X On January 18, Kesmeci provided valuable insights into the Bitcoin market using the Bitcoin NVT Golden Cross metric. For context, Bitcoin’s network value to transaction (NVT) is the underlying ratio of an asset’s market capitalization to transaction volume. It is used to assess whether the market price is overvalued or undervalued based on network activity.

However, Bitcoin NVT Golden Cross is a more advanced version of NVT that involves the apply of short-term and long-term moving averages. It is particularly effective in identifying the peaks and troughs of market cycles by tracking changing dynamics.

Source: @burak_kesmeci on X

Over the last year, Kesmeci notes that the Gold Cross Bitcoin NVT has reached the local low zone, i.e -1.6 points about five times. Each time this occurred, BTC prices rebounded and generated an upward trend. Most notably, during US election week, Bitcoin prices skyrocketed as the NVT Gold Cross hit a local bottom.

Currently, Kesmeci notes that NVT’s golden cross is at -1.44 after being in a downtrend for the past 47 days. Continuous decline to the local bottom zone (-1.6) would confirm the validity of the recent BTC recovery leading to a sustained upward trend.

For long-term investors, the cryptocurrency analyst says Bitcoin NVT Golden Cross has been making higher local bottoms since July 2024, indicating that the premier cryptocurrency has gained robust upside momentum, confirming its potential for further gains.

BTC bulls charge as bull run intensifies

In other news, Bitcoin bulls are making substantial moves after the asset’s prices surged last week. According to CryptoQuant Crazzyblockk Analystdata from Binance shows that Taker’s monthly bid-ask ratio has increased by 18+%, which is a percentage change last seen in June 2022.

In trading, Taker’s buy-sell ratio compares the number of market buy orders to market sell orders. The reported positive enhance in Taker’s bid-ask ratio indicates that buyers have been more aggressive market participants over the past month, reflecting robust bullish sentiment.

At the time of writing, BTC is trading at $104,541, having increased by 1.02% in the last day. The top cryptocurrency is also seeing gains on larger time frames, reflecting gains of 15.14% and 8.54% over the past seven and 30 days, respectively.

Bitcoin
BTC trading at $104,653 on the daily chart | Source: BTCUSDT chart on Tradingchart.com

Featured image from Fortune, chart from Tradingnview

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