The market has been moving sideways over the past few days. Bulls have been struggling to assert dominance. In retrospect, BTC continues to trade below the psychological $60k threshold.
Bitcoin’s NVT Golden Cross has not been successful in surpassing its previously registered peak. The NVT as such weighs the network value to the transactional volume taking place. It helps in deciphering if the network is overvalued or undervalued.
Meanwhile, the NVT Golden Cross helps in gauging the local tops and bottoms.
According to the thumb rule, any reading above 2.2 resonates with a local top, while numbers below -1.7 indicate a local bottom. That being said, it should be noted that this indicator pin-points to price ranges, rather than exact local peaks or trough levels.
With every passing month, the reading has been dropping.
Pointing out the suppressing trend, a recent CryptoQuant analysis pointed out that the NVT Golden Cross flashed readings of 3.17, 3.08, 2.67, 2.03, and 1.46 in March, April, May, July, and August. Chalking out what this means, the analysis pointed out,
“The NVT Golden Cross metric is struggling to surpass its previous peak and is unable to do so. Subsequently, Bitcoin’s price has been declining. All of this indicates that the current uptrend is losing momentum.”
Elaborating on when to expect the tides to turn, the report added,
“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.”
At this stage, it is also important to note that altcoins have been sharing a positive correlation with Bitcoin. Thus, irrespective of the individual variations, all assets of the market are moving in tandem. Only when BTC initiates a recovery, can the rest of the clan be expected to follow along.
