Bitcoin BTCUSD With major BTC price indicators seeing room for growth, it suggests a third “local bottom” could occur in 2024.
The latest research published by on-chain analytics platform CryptoQuant on August 8th shows bullish indications from the network value-to-transaction golden cross (NVT-GC) tool.
BTC price is “overly depressed”
Bitcoin is at risk of collapsing again, people are warning 
BTCUSD This is because moving averages created what is known as a “death cross” this week.
But other market indicators point to a sustained recovery, leaving the longer-term outlook unclear.
Among them is the NVT-GC, which CryptoQuant describes as a volatility gauge similar to Bollinger Bands.
NVT compares Bitcoin’s market capitalization to the value of its transactions within a specific period of time, while the Golden Cross version compares long-term and short-term NVT values.
As a result, we have a rough indication of the maximum and minimum prices in the local market, and in 2024, three such minimum signals were generated.
“If NVT GC crosses the 2.2 point (red zone), it indicates that the price is overheating in the short-term trend and is in the local top area,” CryptoQuant contributor Burakkesmeci explained in one of the Quicktake blog posts.
“On the other hand, if NVT GC falls below -1.6 points (green zone), it indicates that prices have cooled too much and are in the local bottom area.”
Burakkesmeci noted that after two bottom signals, which occurred on Jan. 18 and July 12, BTC prices rose 78% and 23%, respectively.
“Currently, according to NVT GC, we are in the localized bottom area,” he concluded.
“Could prices fall further? Yes, but we can expect short-term trends to turn positive in this area.”
Bitcoin traders see $60,000 support failing
Meanwhile, Bitcoin traded around $60,000 for much of the weekend, according to data from Cointelegraph Markets Pro and TradingView.
Related: Four Years Later, MicroStrategy’s Bitcoin Bets Outperform Warren Buffett’s Warning
Despite holding support during after-hours trading, BTCUSD That doesn’t sit well with everyone, with some popular traders feeling a new selloff is possible.
Crypto Tony uploaded a chart showing the key level of X and predicting a move back to $58,300 next.
“We may need to test the lows again before a full reversal,” blockchain technology expert Elja Boom continued in his latest X commentary, comparing current price action to a year ago. BTCUSD At one point it fell to as low as $25,000.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
