According to TechFlow, on August 12, Cointelegraph reported that Bitcoin showed a "local bottom" signal for the third time in 2024. According to the latest research from the on-chain analysis platform CryptoQuant, the Network Value and Trading Golden Cross (NVT-GC) tool shows a bullish trend. This week, BTC/USD is at risk of falling again as the moving average forms a so-called "death cross." However, the long-term market outlook is unclear, and other market indicators suggest that the rebound may continue.
NVT-GC is described as a Bollinger Band-like volatility indicator. The NVT indicator compares Bitcoin’s market cap to its trading value over a specific time period, while the golden cross compares long-term and short-term NVT values. The results provide a rough guide to market tops and bottoms, with three such bottom signals already seen in 2024.
“If NVT GC rises above 2.2 points (red zone), it indicates that the price is overheated in the short-term trend and is in the local top zone. Conversely, if NVT GC falls below -1.6 points (green zone), it indicates that the price is overcooled and is in the local bottom zone,” explained Burakkesmeci, an analyst at CryptoQuant.
The previous two bottom signals appeared on January 18 and July 12, and BTC prices subsequently rose by 78% and 23%, respectively. Currently, according to NVT GC, we are in a local bottom area. Although prices may fall further, the short-term trend is expected to turn positive in this area.
