Bitcoin NVT Golden Cross Surges Above 2.2, Indicating Overpriced Conditions
On-chain data indicates that the Bitcoin NVT Golden Cross has surpassed the 2.2 mark, historically signaling overpriced conditions for the asset.
Key Points on Bitcoin NVT Golden Cross
- The NVT Golden Cross is an indicator derived from the NVT Ratio, which compares BTC market cap to transaction volume.
- A high NVT Ratio suggests that Bitcoin may be overvalued as its market cap exceeds transaction volume significantly.
- The NVT Golden Cross uses a 10-day moving average compared to a 30-day moving average to identify market tops and bottoms.
- The recent uptick in the NVT Golden Cross indicates potential price corrections, as historical trends show that price corrections often follow when it enters this zone.
- Current Bitcoin price is approximately $103,700, reflecting a nearly 5% decline over the past week.
