Bitcoin’s Network Value to Transactions (NVT) Golden Cross continues its downward trend and reaches its lowest point since early September which points to an upcoming major price rise for the Bitcoin market.
CryptoQuant has developed an on-chain metric called NVT Golden Cross that utilizes Bitcoin’s 10-day moving average NVT Ratio against its 30-day moving average to determine asset valuation status. The current NVT ratio points toward Bitcoin being undervalued at the moment according to on-chain analysis.
Bitcoin Price Trend Shifts
An assessment of the metric shows it reached its lowest point in 60 days at -2.21. Analysis of NVT Golden Cross data reveals a pattern where deep negative readings beneath -1.6 typically indicate market bottoms which generate price appreciation. History shows price corrections mostly follow periods when the metric reaches above 2.2.
After hitting its highest point last month BTC lost value and pushed the indicator down beyond the overheated zone. The indicator has demonstrated a steady downward trend since its previous peak and currently appears in underpopulated territory. Based on historical behavior the current data suggests that BTC is approaching its temporary price base.
The on-chain indication has emerged yet BTC maintained price stability by staying at approximately $105,200. Investors currently observe market consolidation while they wait for price breakout.
The evolving market of BTC is influenced by macroeconomic conditions along with market sentiment despite supportive NVT Golden Cross data. The rising purchasing activity could drive BTC prices up but continued lack of momentum could initiate a lengthy consolidation phase.
The investment community watches this trend closely to determine if Bitcoin will pursue conventional recovery patterns through upcoming periods.
