As BTC trading easily broke through the $27000 mark, Bitcoin's NVT signal rose in a bear market.The balance of miners at BTC has gained upward momentum
As BTC trading easily broke through the $27000 mark, Bitcoin's NVT signal rose in a bear market.
- The balance of miners at BTC has gained upward momentum.
- The market indicator has turned bearish, increasing the likelihood of price decline.
The current bear market is the longest lasting since the birth of Bitcoin. Although there are several indicators in history that can serve as accurate signals of how BTC may react, the situation in this market has changed.
According to the latest report, the performance of a key indicator varies.
Abnormal performance of key indicators of Bitcoin
The crypto market always experiences bull and bear market cycles that last for several months. However, this time the situation is different because we are still witnessing the longest bear market cycle.
In the past few cycles, several key indicators have given accurate signals of expectations for tokens. But this time, one of the main indicators of BTC, the NVT signal, performed strangely.
Firstly, the NVT signal uses the 90 day moving average of daily trading volume as the denominator, rather than the original daily trading volume. According to recent tweets from IntoTheBlock, transaction value and volume were once the preferred indicators.
However, the recent surge in NVT ratios indicates that the value of Bitcoin is now independent of trading utility, suggesting its increasing role as a means of storing value. Previously, NVT signals always surged before BTC prices rose and fell before prices plummeted.
But this time, despite the significant increase in BTC's NVT signal, the price of Bitcoin failed to rise.
What else can I see?
Although the performance of NVT signals varies, there are several other indicators that need attention. For example, reserve risk is used to assess the confidence of long-term holders relative to the price of native tokens at any given point in time.
According to Glassnode's data, the price of BTC is still in the correct accumulation zone, which means investors can still take advantage of this opportunity to purchase more tokens.
When analyzing Bitcoin prices, the miners' perspective is also important. According to Glassnode's data, the balance of miners has shown an upward trend, reflecting their confidence in BTC.
As of the writing of this article, BTC's trading price is far above the $27000 mark, reaching $27843.65, with a market value of over $542 billion.
However, as the Bitcoin Money Flow Index (MFI) enters the overbought zone, the likelihood of a recent downward trend is high.
In addition, Bitcoin's Relative Strength Index (RSI) has also declined, further increasing the likelihood of a decline in the next few days.
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