{"id":2129,"date":"2024-08-29T23:00:09","date_gmt":"2024-08-29T23:00:09","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=2129"},"modified":"2024-08-29T23:00:09","modified_gmt":"2024-08-29T23:00:09","slug":"bitcoins-momentum-at-risk-nvt-golden-cross-sends-warning-signals","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=2129","title":{"rendered":"Bitcoin\u2019s Momentum at Risk? NVT Golden Cross Sends Warning Signals"},"content":{"rendered":"

Bitcoin price action despite being wobbly in the past days, is still being discussed by analysts. Earlier today, a CryptoQuant analyst turned<\/a> the spotlight to the Bitcoin\u2019s NVT Golden Cross, a metric that has been known to signal potential local tops and bottoms in Bitcoin\u2019s price.<\/p>\n

According to the analyst, Burak Kesmeci, this metric is now showing a reason for concern as it is currently struggling to surpass its previous peaks.<\/p>\n

How Is The NVT Golden Cross Signalling a Warning For Bitcoin?<\/h2>\n

To answer this question, it is worth first understanding what the NVT Goden Cross means. Notably, the NVT (Network Value to Transactions) Golden Cross is a major metric used to determine the health of Bitcoin\u2019s market<\/a>.<\/p>\n

It is calculated by dividing the network value (market cap) by the daily transaction volume, and then applying a moving average to this ratio.<\/p>\n

Traditionally, when the NVT Golden Cross rises above 2.2 points, it signals a local top<\/a>, while dropping below -1.7 points indicates a local bottom.<\/p>\n

According to the report shared by the CryptoQuant analyst, the NVT Golden Cross has been showing a concerning trend over the past few months.<\/p>\n

The metric has consistently failed to surpass its previous peaks, which has historically been a bearish sign. Since March 2024, the peaks of the NVT Golden Cross have been steadily declining<\/a>.<\/p>\n

Kesmeci disclosed that on March 31, the metric plunged to 3.17, on April 29, it decreased to 3.08, on May 27: 2.67, on July 29: 2.03 and on August 26: 1.46. According to Kesmeci, this declining trend suggests that the current uptrend in Bitcoin\u2019s price may be losing steam.<\/p>\n

The analyst noted:<\/p>\n

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.<\/p>\n

Outlook On BTC Future<\/h2>\n

Despite the cautionary signals from the NVT Golden Cross, not all analysts are sounding the alarm. Prominent crypto analyst Ash Crypto recently shared a more optimistic outlook on X, suggesting<\/a> that the current price dips should be viewed within the context of a broader bullish pattern<\/a>.<\/p>\n

Ash Crypto emphasized that the Bitcoin bull-flag pattern remains intact and that investors should focus on long-term charts rather than short-term volatility. Ash Crypto further supported his bullish stance<\/a> by pointing to global liquidity metrics.<\/p>\n

He noted<\/a> that global liquidity (M2) has reached an all-time high of $95 trillion, a factor that historically correlates with significant upward movements in Bitcoin\u2019s price.<\/p>\n

BREAKING<\/p>\n

GLOBAL LIQUIDITY (M2) REACHED A
\nNEW ALL-TIME HIGH RECORD OF $95
\nTRILLION.<\/p>\n

BITCOIN ALWAYS FOLLOW GLOBAL
\nLIQUIDITY, SO BTC TO $125k+ SOON pic.twitter.com\/NGGhxD38g2<\/a><\/p>\n

\u2014 Ash Crypto (@Ashcryptoreal) August 29, 2024<\/a><\/p>\n

According to his analysis, this could propel Bitcoin to reach the $100,000 mark sooner than many expect, with potential for even higher gains, possibly reaching $125,000.<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin price action despite being wobbly in the past days, is still being discussed by analysts. Earlier today, a CryptoQuant analyst turned the spotlight to the Bitcoin\u2019s NVT Golden Cross, a metric that has been known to signal potential local tops and bottoms in Bitcoin\u2019s price. According to the analyst, Burak Kesmeci, this metric is […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2129","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/2129"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2129"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/2129\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}