Bitcoin NVT Golden Cross Indicates Potential Downtrend for BTC Price
On-chain data indicates a bearish trend for Bitcoin as its NVT Golden Cross approaches overheated territory.
Key Points on Bitcoin NVT Golden Cross
- The NVT Ratio, measuring the market cap against transaction volume, is currently high.
- A high NVT Ratio suggests Bitcoin may be overvalued.
- The NVT Golden Cross uses 10-day and 30-day moving averages to assess short-term versus long-term trends.
- Recent data shows the NVT Golden Cross has surpassed the 2.2 mark, historically linked to price tops.
- Despite a recent price decline, the NVT remains elevated at 1.8, indicating potential further pullbacks.
- Historically, price bottoms occur when the NVT Golden Cross falls below -1.6.
Bitcoin is currently trading at approximately $83,300, reflecting a nearly 6% decrease over the last week.
