Bitcoin (BTC) is potentially reaching a “local bottom” following a recent decline in early August, according to a recent CryptoQuant analysis. The platform’s on-chain analytics highlighted bullish indicators from the network value to transaction golden cross (NVT-GC) tool, suggesting there may be room for future growth.
Despite concerns about a possible BTC/USD breakdown, the NVT-GC tool, which functions similarly to Bollinger Bands, signals a potential rebound. This tool evaluates Bitcoin’s market capitalization relative to transaction value, helping to pinpoint market highs and lows.
CryptoQuant analyst Burakkesmeci noted that an NVT-GC reading above 2.2 points indicates an overheated market, while a drop below -1.6 points points to excessive cooling and a local bottom. Currently, the tool shows a local bottom, echoing signals from January 18 and July 12, which were followed by price increases of 78% and 23%, respectively.
As of now, Bitcoin is trading at $58,681, reflecting a 3.8% decrease over the past 24 hours after slipping below the $60,000 threshold. However, Bitcoin has rebounded with a 7.58% gain over the past week, recovering from a low of $49,500.
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