Bitcoin NVT Golden Cross is approaching a local bottom

Cryptocurrency analyst, Burak Kesmisi, recently shared another bullish prediction regarding Bitcoin (BTC), suggesting that the number one cryptocurrency could be on an uptrend for the foreseeable future. Meanwhile, Bitcoin continues to hover around $104,000, showing no significant movement over the past day after a strong price rebound last week.

Bitcoin NVT Golden Cross is approaching the local bottom, and the price uptrend is locked

in Share 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 a basic ratio of an asset’s market value to its transaction volume. It is used to measure whether the market price is overvalued or undervalued based on network activity.

However, the Bitcoin NVT Golden Cross is a more advanced version of NVT that involves the use of short-term and long-term moving averages. It is particularly effective in identifying the tops and bottoms of a market cycle by tracking changes in momentum.

Over the past year, Kesmeci has noticed that the Bitcoin NVT Golden Cross has reached a local bottom zone, i.e ≥ -1.6 points about five times. Each time this happens, Bitcoin prices rebound and produce an uptrend. Most notably during the US election week, Bitcoin prices rose as the NVT Golden Cross touched its local bottom.

Currently, Kesmeci indicates that the NVT Golden Cross is at -1.44 after being in a downtrend for the past 47 days. Continuous fall to the local lower zone (≥-1.6) It will confirm the validity of the recent BTC recovery leading to a continued uptrend.

For longer-term investors, the cryptocurrency analyst notes that the Bitcoin NVT Golden Cross is forming higher local lows since July 2024, indicating that the flagship cryptocurrency has accumulated strong upward momentum that supports its potential for further gains.

BTC Bulls are trending higher as the uptrend intensifies

In other news, Bitcoin bulls are making big moves after the asset’s price soared last week. according to CryptoQuant Crazzyblockk AnalyzerData from Binance shows that the recipient’s monthly buying and selling ratio rose by 18+%, a change last recorded in June 2022.

In trading, The trader’s buying and selling ratio It compares the number of buy orders in the market to the sell orders in the market. The positive gains reported in the buy-to-sell ratio indicate that buyers are the more aggressive market participants over the past month reflecting a strong bullish sentiment.

At the time of writing, Bitcoin is trading at $104,541 after a 1.02% gain in the past day. The leading cryptocurrency is also making gains on larger time frames reflecting gains of 15.14% and 8.54% in the last seven and 30 days, respectively.

Featured image from Fortune, chart from Tradingnview