The key indicators of Bitcoin indicate that its market value is approaching an overestimated level. Does this indicate a price adjustment?The price of BTC has fluctuated slightly in the past 24 hours
The key indicators of Bitcoin indicate that its market value is approaching an overestimated level. Does this indicate a price adjustment?
- The price of BTC has fluctuated slightly in the past 24 hours.
- Most market indicators and indicators look bearish.
The price of Bitcoin [BTC] has been consolidating around the $35000 mark for a considerable period of time. Although this is a positive signal, it also means the end of the crypto king bull market rebound. But some data suggests that the dark days of Bitcoin may be approaching.
Is Bitcoin actually overvalued?
Bitcoin investors are finally pleased that Bitcoin has successfully maintained a critical level. However, due to its slower price increase compared to a few weeks ago, its upward momentum has stopped.
According to CoinMarketCap data, BTC has only risen by 4% in the past 24 hours. As of the writing of this article, the transaction price of BTC is $35154.78, with a market value exceeding $686 billion.
Although the price of BTC remains around the $35000 mark, a key indicator has turned bearish. CryptoQuant writer and analyst MAC_ In recent analysis, D pointed out that the Network Transaction Value (NVT) signal of BTC has reached a significantly overestimated level.
To be precise, the value of this indicator at the time of its release is 2.19.
For laymen, the NVT ratio describes the relationship between market value and transfer volume. The calculation method for this indicator is to divide the market value of tokens by the total transaction volume on the BTC chain. However, there is an interesting question.
MAC_ In the analysis, D mentioned that this situation was common in past recovery stages, and BTC would increase with the increase of market value. This often leads to further price increases and transitions to a bull market.
Although NVT signals have performed differently in the past, let's examine other indicators to see if price correction is imminent.
Bitcoin may experience corrections
CryptoQuant's data shows that BTC's foreign exchange reserves are increasing, which means there is significant selling pressure on the currency as of the time of publication. Its aSORP is also red. This clearly means that investors sell their stocks for profit, which can be explained as the top of the bull market.
Not only these indicators, but some market indicators are also bearish on the cryptocurrency king. For example, MACD displays bearish crosses. The relative strength index (RSI) of BTC is in the overbought region.
In addition, its Capital Flow Index (MFI) has decreased and is close to neutral, increasing the possibility of price adjustments.
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