Bitcoin sees bullish market indicators signaling a possible bottom
Bitcoin (BTC) is showing signs of reaching a “local bottom” during the recent early-August sell-off, according to recent analysis by CryptoQuant. The insights posted on the on-chain analytics platform highlighted bullish signals from the Network Value vs. Transaction Golden Cross (NVT-GC) tool, suggesting there is room for growth.
Despite recent warnings that BTC/USD may decline, the NVT-GC tool, which is similar to Bollinger Bands, indicates that a rebound is possible. The indicator compares Bitcoin’s market cap and trading volume over time to identify the highest and lowest points in the local market.
CryptoQuant contributor Burakkesmeci explained that an NVT-GC above 2.2 points indicates price overheating, while a drop below -1.6 points suggests overcooling and a local bottom. Currently, the tool is indicating a local bottom, similar to signals on Jan. 18 and July 12 that preceded price rallies of 78% and 23%, respectively.
BTC is currently trading at $58,681, down 3.8% in the past 24 hours after losing the $60,000 level. However, Bitcoin has recovered strongly from the lows of $49,500, increasing 7.58% in the past seven days.