Bitcoin faces potential local low in 2024 amid mixed signals
Share link:In this post: Bitcoin is experiencing signs of a potential third local low in 2024. Network Value to Transaction Golden Cross (NVT-GC) shows signs of cooling off. Bitcoin has been trading around $60,000, but some traders predict a potential drop to $58,300 before a reversal.
Bitcoin’s decline suggests a third “local low” in 2024, as a key metric for Bitcoin’s price shows potential for an increase. A new analysis from CryptoQuant on August 8 indicates a bullish trend in the network value to transaction golden cross (NVT-GC) indicator.
Bitcoin’s price is showing signs of cooling off, with warnings of another downturn in BTC/USD this week due to moving averages indicating a “death cross.”
Despite these concerns, other indicators are suggesting a possible rebound. The Network Value to Transaction Golden Cross (NVT-GC), a volatility gauge akin to Bollinger Bands, shows signs of a local bottom. This tool compares Bitcoin’s market cap to transaction values over time, and its Golden Cross version contrasts long-term and short-term NVT values.
Bitcoin’s NVT-GC points to a possible rebound despite cooling price
CryptoQuant’s contributor Burakkesmeci explains that when the NVT-GC rises above 2.2 (the red zone), it signals that Bitcoin’s price is overheating and approaching a local top. Conversely, a drop below -1.6 (the green zone) suggests the price is excessively cooling and hitting a local bottom.
In 2024, three local bottom signals appeared, with previous instances on January 18 and July 12 leading to subsequent BTC price increases of 78% and 23%, respectively.
At this moment, we are in a local low area according to the NVT GC. Can the price go higher? Yes, but we should expect the short-term trend to shift back to the positive.
Burakkesmeci
Bitcoin traders are losing faith in $60,000 support
According to TradingView, Bitcoin has been trading around $60,000 over the weekend. Despite some holding support levels, not all traders are convinced.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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