Data on the chain shows that the value of the Bitcoin network for transactions (NVT) Golden Cross is currently showing a trajectory that may suggest bears of BTC price results.
Bitcoin NVT Golden Cross is now near the overheated territory
As the analyst explained in quick cryptochants postThe NVT gold cross currently has a high value. “NVT factor” is an indicator in a chain that follows the ratio between the limitation of the bitcoin market and the size of the transaction.
The market captain here is simply the total value of the circulating supply of cryptocurrency at the current spot price, while the transaction volume is a measure of the total amount of assets that is involved in transfer activities on the web.
When the value of the NVT coefficient is high, it means the BTC value (that is, market capitalization) is high compared to its capacity to transaction coins (transaction volume). Such a trend can be a sign that the coin is overstated.
On the other hand, the low level of record suggests that the price of cryptocurrency may result from the reflection in relation to the top, because market capitalization is not overheated compared to the volume.
In the context of the current topic, a modified form of the NVT factor known as the Golden Cross NVT is an indicator of interest. The NVT gold cross is a measure similar to the Bollinger bands, which compares the low -term trend of NVT ratio compared to its long -term to determine if the upper or down is close. The indicator uses a 10-day movable (MA) average for a short-term trend and a 30-day master for the long-term.
Here is a chart that shows the trend in the Golden Cross Bitcoin NVT over the past year:
As shown in the graph above, Bitcoin NVT Golden Cross recently affected the high value. The escalate in the indicator was so piercing that it entered a special zone behind the sign 2.2.
In this region, the price of an asset has often created a kind of peak. The same applied to the same time during a visit to the zone, and the price of BTC was witnessed by a bear.
When the price of the coin has passed over the past week, the record also nippy down. However, despite the decrease, its value still remains relatively high. As the quantity notes,
Currently, NVT indicates that the withdrawal will probably be continued and that the recent price escalate was caused by manipulation. For the upward trend to be balanced, the volumes of transactions on the web must escalate.
Historically, DNA took place when the Golden Bitcoin NVT cross passed below the sign -1.6. Until now, the indicator has only dropped to 1.8, which means that it still has many ways before entering this region.
BTC price
At the time of writing, Bitcoin trads around USD 83,300, which is a decrease of almost 6% in the last seven days.
