The Bitcoin NVT Golden Cross metric can help us identify local tops and bottoms.

The simple formula here states "above 2.2 points is a local top, below -1.7 points is a local bottom". In fact, it points more to a region rather than an exact local top or bottom level. However, the data from the last 6 months is quite interesting. Let's examine the peaks of the NVT Golden Cross since March 2024:

March 31: 3.17

April 29: 3.08

May 27: 2.67

July 29: 2.03

August 26: 1.46

I'm sure you've noticed this as well.

The NVT Golden Cross metric is struggling to surpass its previous peak and is unable to do so. Subsequently, Bitcoin price has been declining. All of this indicates that the current uptrend is losing momentum.

It seems that for the momentum to be regained, the NVT Golden Cross needs to surpass the previous peak and bring the bulls behind it.

Thank you for reading.

Written by burakkesmeci