Bitcoin’s NVT Golden Cross: The Crypto Rollercoaster You Didn’t Sign Up For 🎢

by

According to a CryptoQuant Quicktake post that probably took longer to write than it did to read, the Network Value to Transactions (NVT) Golden Cross is waving a big red flag. Bitcoin (BTC) is currently strutting around with a high market cap while its network transaction volume is slacking off like a teenager on a Sunday morning. This has led to whispers that BTC’s price might be as inflated as a politician’s ego.

Is Bitcoin Overpriced? Or Just Overhyped? 🤔

Over the past week, BTC has dropped 5.5%, trading in the low $80,000 range, which is still more than most of us have in our bank accounts. Earlier this month, the cryptocurrency hit a potential local bottom at around $76,000, sparking hopes of a price rally that might have been as fleeting as a New Year’s resolution.

However, CryptoQuant analyst BorisVest, who probably has a crystal ball or at least a very fancy spreadsheet, warns that BTC’s troubles might not be over. In a Quicktake post, the analyst remarked that based on the NVT Golden Cross, Bitcoin’s price decline could continue. Because, you know, the market loves a good drama.

For those who haven’t been initiated into the cult of crypto jargon, the NVT Golden Cross is calculated by dividing the market capitalization of an asset by its network transaction volume. The post reads:

A high market cap with low transaction volume suggests that Bitcoin’s price may be inflated due to speculative activity. This often leads to or indicates potential pullbacks.

BorisVest explained that the NVT metric can be used for both short- and long-term analysis. The analyst shared the following chart, recommending that investors wait until the indicator moves into the green zone before making any buying decisions. Because, apparently, green is the new black.

Once the NVT indicator enters green territory, it would suggest that BTC’s market capitalization is low, while network transaction volume is rising – a scenario that presents a strong buying opportunity for investors and traders. Or, as we like to call it, the crypto equivalent of a Black Friday sale.

That said, the current position of the NVT indicator suggests that BTC’s price pullback is likely to continue. Additionally, the analysis suggests that Bitcoin’s recent price surge may have been driven by market manipulation. Because, of course, it was.

For BTC’s price to maintain its upward momentum in the long run, network transaction volume must increase sustainably. Meanwhile, fellow crypto analyst Ali Martinez has a different perspective on Bitcoin’s near-term price action. Because, you know, everyone’s got an opinion.

BTC Traders: Holding On For Dear Life 🚀

In an X post today, Martinez noted that BTC traders are currently sitting on an average unrealized loss of 14.57%. This could discourage them from selling at current prices and locking in a loss. Because, let’s face it, no one likes to admit they’ve made a bad investment.

Several macroeconomic indicators suggest a potential trend reversal for BTC in the coming weeks or months. For instance, crypto analyst Master of Crypto recently highlighted that BTC could be on the verge of a bullish reversal, with the M2 money supply expected to increase. Because, you know, more money equals more problems. Or something like that.

Additionally, technical indicators also hint at a price rally. A noted crypto trader recently pointed out that BTC is following the bullish ‘megaphone pattern’. At press time, BTC trades at $83,444, up 0.8% in the last 24 hours. Because, apparently, the market loves a good pattern.

Read More

2025-04-01 08:13