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Bitcoin Signals Potential Bottom as Market Indicators Turn Bullish
According to recent analysis on CryptoQuant, Bitcoin (BTC) is showing signs of hitting a "local bottom" in the recent early August sell-off. An insight posted on the on-chain analytics platform highlighted bullish signals from the network value to transaction golden cross (NVT-GC) tool, suggesting room for growth.
Despite recent warnings of a potential breakdown in BTC/USD, the NVT-GC tool, akin to Bollinger Bands, indicates a possible rebound. This metric compares Bitcoin's market cap to transaction value over time, identifying local market tops and bottoms.
CryptoQuant contributor Burakkesmeci explained that if the NVT-GC rises above 2.2 points, it signals an overheated price, while a drop below -1.6 points suggests excessive cooling and a local bottom. Currently, the tool indicates a local bottom, similar to signals on January 18 and July 12, which preceded price gains of 78% and 23%, respectively.
BTC is currently trading at $58,681, down 3.8% over the past 24 hours after having lost the $60,000 level. However, Bitcoin gained 7.58% over the past 7 days after a strong recovery from the lows of $49,500.