This Bitcoin Indicator May Have Signaled Latest Market Downturn In Advance

The Bitcoin Network Value to Transactions (NVT) Golden Cross indicator attained overheated values coinciding with the recent local top in the price. Bitcoin NVT Golden Cross Surged To 3.17 During Recent Peak An analyst in a CryptoQuant Quicktake post explained that the NVT Golden Cross may have served as an indicator of the recent top in cryptocurrency prices. The “NVT” refers to an on-chain metric that tracks the ratio between Bitcoin’s market cap and transaction volume (both in USD). This ratio is generally used to determine whether the asset’s price is fair or not. Related Reading: Bitcoin Short-Term Holders Capitulate: $5.2 Billion Sold At Loss When the indicator has a high value, the asset’s price (the market cap) is high compared to its utility (the transaction volume). Such a trend may suggest that the coin could be overvalued currently. On the other hand, the low metric could suggest the network isn’t valued fairly compared to its high ability to transact capital, and as such, its price may be due to an uplift. In the context of the current discussion, the NVT itself isn’t interesting, but rather, a modified version called the NVT Golden Cross is. This metric compares the short-term trend of the NVT (10-day moving average) against its long-term trend (30-day MA). Like the NVT, this variant is also used to estimate the fairness of the asset. Historically, values greater than 2.2 have been a signal that BTC is overheated, as the short-term trend is notably outpacing the long-term at these levels. Similarly, values under the -1.6 level may indicate that the cryptocurrency is undervalued; hence, its price may likely form a bottom and find a rebound soon. Now, here is a chart that shows the trend in the Bitcoin NVT Golden Cross over the last few years: The value of the metric seems to have been going up in recent days | Source: CryptoQuant As displayed in the above graph, the Bitcoin NVT Golden Cross rose to relatively high levels earlier. This growth happened as the asset’s price rallied towards the $71,000 level. The metric had touched the 3.17 mark in this surge, which suggests the coin may have become too overpriced. Indeed, the asset followed this by observing a sharp drawdown, which took it back under the $65,000 level. As the quant has marked in the chart, a similar pattern of the NVT Golden Cross hitting these high levels and resulting in a price correction was observed at different points over the last few years. Related Reading: Bitcoin Traders No Longer Extremely Greedy: Rebound Signal? Since the latest overheated signal, the indicator has cooled off alongside the Bitcoin price, although it hasn’t gone towards the negative side yet. BTC Price Bitcoin has recovered over the past day as its price has now climbed back to $67,800. Looks like the price of the asset has seen some uplift over the last 24 hours | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com

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This Bitcoin Indicator Has Hit Levels That Often Lead To Corrections

On-chain data shows a Bitcoin metric has recently hit levels that have historically led to corrections in the cryptocurrencys price. Bitcoin Is Currently 40% Above The Cost Basis Of Short-Term Holders CryptoQuant Netherlands community manager Maartunn explained in a post on X that the BTC price is currently 40% above the cost basis of the [...]

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Bitcoin Indicator Signals Equilibrium After Trump Victory A Clear Path To New Highs?

Bitcoin is trading around $75,000 following Donald Trumps victory in the U.S. election, stirring fresh optimism in the crypto market. Trumps pro-crypto stance has ignited excitement among analysts and investors who anticipate favorable policies for digital assets in his administration. With Bitcoin now sitting at all-time highs, many speculate this could begin a new rally phase. Related Reading: Ethereum Analyst Sets $3,400 Target Once ETH Breaks Key Resistance Details Key data from CryptoQuant indicates that Bitcoin has reached a price equilibrium, suggesting there are no strong market forces pulling the price lower. This positive equilibrium reinforces the bullish outlook and hints at a stable foundation for further growth. Analysts believe Bitcoin may be set for new highs with fewer obstacles in the coming weeks. As investor confidence builds, some view this phase as a critical moment for Bitcoin to solidify its position in a pro-crypto policy environment. The combination of strong technical support and positive sentiment from Trumps victory has set the stage for what many hope will be a significant upward trend, potentially driving the broader crypto market higher. Bitcoin Enters A Bullish Phase Bitcoin has officially entered a bullish phase after breaking past its previous all-time highs, reaching $76,500. This level has become a new area of focus as many analysts identify it as a potential resistance zone.  According to CryptoQuant analyst Axel Adler, the market is currently balanced between a Bubble and a Crash phase. Adlers analysis, which includes key on-chain data, suggests that Bitcoins market structure is at an equilibrium, meaning there are no significant fundamental reasons to anticipate a drop. Instead, this setup provides a stable foundation for possibly continuing Bitcoin’s upward trend. With the Federal Reserves interest rate decision set to be announced today, the next few weeks promise to be pivotal. A stable or favorable decision from the Fed could reinforce the optimism in the market, drawing in new demand and reinforcing Bitcoin’s position above $76,000.  Many investors and analysts expect heightened activity from institutional players, particularly given Bitcoin’s resilience around this milestone level. The markets balance at this juncture is crucial. As long as Bitcoin maintains its current structure, it has the potential to continue its upward trajectory without substantial risk of retracement.  Related Reading: Ethereum Analyst Shares Correlation With S&P500 Last Dip Before It Hits $10,000? With fresh demand entering the market and the macroeconomic backdrop shaping up favorably, Bitcoin may soon aim for even higher levels. For now, all eyes remain on the $76,500 mark and how the market will respond in the wake of the Federal Reserve’s announcement. This period of consolidation could be the catalyst for the next leg up, solidifying Bitcoin’s bullish outlook. BTC Key Levels To Watch  Bitcoin is trading at $75,000, holding steady above its previous all-time high of approximately $73,800. This level has become a critical support zone as BTC continues in a well-defined 4-hour uptrend. The trend began after a strong bounce from the 200 exponential moving average (EMA) at $66,800, indicating renewed bullish momentum. Bulls need to keep the price above the $73,000 mark to sustain this momentum, a key psychological threshold. This level boosts market confidence and provides a potential springboard for Bitcoin to reach higher targets soon. A confirmed hold above $73,000 could signal further upside, inviting additional buying pressure and potentially setting up BTC for new highs. Related Reading: Solana Must Break Descending Resistance To Regain Bullish Momentum Analyst However, if BTC fails to hold this level, it could slip toward a lower demand area of around $70,500. Despite this possibility, current price action shows no significant signs of a downturn. The steady uptrend and firm support levels suggest that Bitcoins bullish outlook remains intact, with little indication of an imminent drop. As long as BTC maintains its structure, the path toward continued gains remains clear, reinforcing confidence in the ongoing rally. Featured image from Dall-E, chart from TradingView

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Bitcoin On-Chain Indicator Signals Panic Selling At Current Levels Time To HODL?

Bitcoin is showing resilience, holding firm above the $69,000 mark after a slight pullback from recent local highs at $73,600. Following weeks of bullish momentum and nearing its all-time high, BTC has settled just below the critical $73,794 resistance, a key level that, if surpassed, would push the cryptocurrency into price discovery mode.  According to data from CryptoQuant, short-term holders are experiencing a net profit-to-loss of negative 20 BTC, indicating a wave of panic selling among retail investors. This type of behavior, often driven by fear, uncertainty, and doubt (FUD), can precede a significant price surge as stronger hands accumulate BTC at lower prices. Related Reading: Analyst Exposes Ethereum Ascending Support At $2,400 Best Chance To Accumulate ETH? Historically, similar sell-offs by retail investors have been followed by renewed upward momentum as longer-term holders seize the opportunity to enter or reinforce their positions. If Bitcoin can maintain support above $69,000, the odds of a breakout past its all-time high increase substantially.  Market watchers are now closely monitoring the resistance level, as surpassing it could trigger a wave of buying interest and push BTC into new highs. The coming days may prove crucial, setting the stage for Bitcoins next big move. Bitcoin Weak Hands Selling Bitcoin recently attempted a breakthrough to new heights but failed to breach its all-time high of $73,794, entering a consolidation phase as the market eyes key events: next weeks U.S. election and the Federal Reserves anticipated interest rate decision.  CryptoQuants recent data, shared by analyst Axel Adler on X, points to a noteworthy trend among short-term BTC holders. The net profit-to-loss ratio for these holders shows a negative balance of -20 BTC, indicating a wave of panic selling following Bitcoins struggle to establish new highs. This sell-off among short-term investors, who tend to react more quickly to market volatility, suggests some caution amid uncertainty. Adler emphasizes that in such turbulent times, a long-term HODL (hold on for dear life) approach can be the most beneficial strategy. Holding strong through market noise has historically rewarded BTC investors who keep their positions intact during periods of retracement and heightened volatility.  With Bitcoin’s all-time high in sight, a successful breakout would likely signal the beginning of a broad market bull run. The coming days are critical as Bitcoin sits at a pivotal point in its cycle, balancing between strong consolidation and the possibility of explosive growth.  Related Reading: Bitcoin Open Interest Reduced By $2.1 Billion In 24 Hours Time For Spot To Push The Price? The influence of the Federal Reserves decision on interest rates, paired with potential election outcomes, could create the market conditions needed for BTC to push past its all-time high. If this level is breached, it would not only affirm a bullish outlook for BTC but likely set off a rally across the entire cryptocurrency market.  BTC Holding Above Key Support Bitcoin is currently trading at $69,620 following a retrace from its recent high near $73,600. Despite this pullback, bulls remain in control as BTC holds firmly above the crucial $69,000 support levela price point that acted as resistance since late July. This level has now transformed into strong support, bolstering bullish sentiment in the market. If Bitcoin holds above $69,000, a renewed push above all-time highs seems likely. Breaking this resistance would propel BTC into uncharted territory, potentially sparking a fresh wave of bullish momentum and price discovery. However, if the price dips below this mark, it could signal a need for a more significant correction to gather enough buying power for the next move up. Related Reading: Dogwifhat (WIF) Prepares For A Bullish Breakout Analyst Sets $3 Target The $69,000 level serves as a key indicator of market confidence, as losing it would imply that BTC might temporarily seek lower support levels to attract new buyers and stabilize before another attempt at new highs. For now, Bitcoins price structure remains strong, and as long as this support holds, the market anticipates further upside momentum in the coming days. Bulls are closely watching this level, as it may define the next phase of Bitcoins bull run. Featured image from Dall-E, chart from TradingView

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On-Chain Indicator Signals Bitcoin Cycle Top Is Far Ahead Data Confirms Bullish Outlook

Bitcoin currently ranges between $65,000 and $69,500 following two weeks of bullish price action, sparking renewed optimism among analysts and investors. The prevailing sentiment is that BTC is on the verge of reaching new all-time highs in the coming weeks, with confidence building that Marchs cycle top predictions may have been premature.  Related Reading: Dogecoin Liquidity Sweep Signals DOGE Is Ready For A Rally Key metrics from CryptoQuant reveal that Bitcoin is still far from typical cycle-top conditions, instead signaling a bullish outlook as we move into November. As the U.S. election approaches November 5 and macroeconomic factors continue to shift, price action is expected to remain unpredictable and volatile. Market participants are watching closely, expecting that geopolitical and economic events could influence BTCs trajectory. Given this context, many believe the next major move for Bitcoin could catalyze a fresh leg up, potentially breaking through previous highs. Bitcoin Calm Before The Storm? Bitcoin is holding firm above $67,000, showing resilience as it edges to a potential breakout above $70,000. However, the current price action indicates that Bitcoin may consolidate below this key level before moving up to new highs in the next leg. Market participants closely watch BTCs behavior around these price levels, as a sustained push above $70,000 could set the stage for significant gains. CryptoQuant analyst Axel Adler recently shared critical insights on X, highlighting the current Long-Term Holder (LTH) to Short-Term Holder (STH) SOPR Ratio, which sits at 1.8. This metric is often used to gauge selling pressure and market sentiment, with higher levels indicating increased profit-taking that could signal a market peak.  According to Adler, when this ratio climbs to around 7, Bitcoin will be nearing a cycle culmination. The ratios bullish cross with its 90-day moving average reflects a positive outlook, supporting the narrative that BTC remains well below its cycle top. Related Reading: Number Of Bitcoin Bulls Increases As Funding Rate Shows Steady Growth Details This metrics movement and broader market strength paint a favorable picture for Bitcoins price action in the coming weeks. The data suggests that Bitcoin still has room to grow within this cycle, providing confidence to long-term holders and investors looking for continued upside. BTC Technical Levels Bitcoin is trading at $67,500, facing challenges after failing to maintain its bullish structure on the 4-hour chart. The price couldnt set a new high above $69,500, marking a potential shift in momentum. A crucial support level now sits at $65,000, the local low that previously held the bullish trend intact. Holding above this level is essential to prevent a broader retrace and maintain confidence among bulls. Currently, price action remains indecisive, leaving the direction for the coming days unclear. A breakout above $69,500 would restore the bullish structure, likely drawing more buyers into the market and signaling another rally attempt. Conversely, a break below the $65,000 support would signal a retrace, potentially leading BTC to lower demand zones as bulls look to regroup. Related Reading: Solana Stays Strong Despite BTC Drop $176 Next? The current consolidation phase highlights the importance of these levels in determining Bitcoins short-term trajectory. With both bulls and bears vying for control, BTCs ability to hold above $65,000 will be crucial to retaining bullish sentiment. Featured image from Dall-E, chart from TradingView

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