Bitcoin Price: NVT Golden Cross Indicates Price Rise Is Not Yet Over

Are you following the soaring price of Bitcoin and wondering if it's too late to join the party? As Bitcoin continues its impressive rise, many investors are concerned about a sudden fall. However, according to in-depth analysis of on-chain data, the current bullish trend of Bitcoin may just be getting started. Understanding NVT Golden Cross A powerful tool for evaluating Bitcoin's valuation against network activity is the Network Value to (NVT) Transaction ratio. Think of it as the P/E ratio for stocks, but for Bitcoin, comparing the market capitalization of (Giá mạng) to the value of transactions moving on the blockchain. NVT Golden Cross is a refined version of this metric, developed by analyst Willy Woo and further explored by platforms such as CryptoQuant. Essentially, it uses the crossover moving average of the NVT rate itself to generate trading signals. Specifically, it looks at the relationship between the 62-day moving average and the 14-day moving average of the NVT rate. Here is a simple analysis: Network value (Market capitalization ): Total value of all existing Bitcoin (Price * Circulating supply ).Transaction value: Total USD value of confirmed transactions on the Bitcoin blockchain over a specific time period.NVT ratio: Network value/Transaction value. High NVT indicates a high market capitalization relative to trading volume, potentially signaling overvaluation. Low NVT indicates a low market capitalization relative to trading volume, potentially signaling undervaluation.NVT Golden Cross: A specific signal derived from the moving averages of the NVT ratio, aimed at providing stronger buy/sell signals compared to the raw ratio alone. What does the current NVT Golden Cross value tell us? According to Burak Kesmeci, a verified analyst at CryptoQuant, the current NVT Golden Cross value is 1.51. This figure is significant as it provides an overview of the position of the Bitcoin market in terms of potential overheating. Kesmeci's analysis, shared on the CryptoQuant platform, highlights specific thresholds for this metric: Above 2.2: Bullish trend, potentially overbought - Local peak indicated by history. Between -1.6 and 2.2: Neutral to bullish trend, not significantly overbought/oversold - Suggests space for next movement. Below -1.6: Bearish trend, potentially oversold - Potential bottom indicated by history.

The current reading is 1.51, while reflecting a bullish trend ( when the price increases), still comfortably below the previous threshold of 2.2 which indicated overbought conditions and potential local peaks. This is the core reason why the on-chain data point for this specific metric shows that the bullish phase is not too overheated yet. Why should we trust on-chain data like NVT? Unlike traditional market analysis, which often relies on price charts and trading volumes (phân thorough thuật) or macroeconomic factors (phân bản) fundamentals, on-chain data provides a first-hand view of the activity taking place on the blockchain itself. This includes: Transaction Volume and ValueAccumulation (tích Wallet ActivityMiner's Micro phối)Hành Distribution (dòng Exchange Flow and ra) Flow Metrics like NVT Golden Cross combine network activity with market valuation to provide unique insights into whether the current price is supported by the underlying network usage. While no single indicator is perfect, on-chain metrics have proven valuable in identifying broader market trends and potential turning points in the Bitcoin price cycle. What are the benefits and challenges of using NVT Golden Cross? Benefits: Basic information: Direct pricing connection with the network utility (trading).Historical reliability: Has shown performance, although not perfect, in identifying important peaks and troughs.Less manipulated: Based on verifiable blockchain data rather than just relying on speculative trading patterns. Challenge: Definition of Trading: This index is based on identifying and valuing transactions, which can sometimes be complex (, for example: distinguishing economic transactions from internal wallet movements ). Imperfect: Like all indicators, it can give false signals or miss turning points. Market psychology and external factors also play an important role. Contextual requirement: It is best used in conjunction with other metrics and forms of on-chain analysis. Useful detailed information: What does this mean for your Bitcoin strategy? The fact is that the NVT Golden Cross is below the threshold of 2.2, providing a certain level of confidence that the current bullish momentum of Bitcoin is not yet a parabolic curve or simply due to unsustainable speculation based on this specific data. This observation from CryptoQuant indicates: Investors holding Bitcoin can take this as confirmation that there may be more room for growth before a major correction signaled by the index. Those who are considering buying can understand this as a sign that the market is not overvalued based on the network's activity. However, it's important to remember that "not too hot" doesn't mean "can't be adjusted." Market volatility is complex. This analysis plays a crucial role in the puzzle, encouraging market participants to look beyond price charts and consider the operational situation and the fundamental health of the Bitcoin network itself, as revealed by comprehensive on-chain data. Conclusion: The protest continues, but stay alert. Bitcoin's recent performance has been remarkable, pushing the price to significant new highs. While such a rapid increase can often cause fears of an imminent collapse, the NVT Golden Cross figures, as highlighted by CryptoQuant's analysis, offer a convincing counterattack. The current index of 1.51 suggests that, from the perspective of network valuation relative to trading volume, Bitcoin's rally does not show the typical indication of overbought. This specific chain data provides bullish signals in the medium term, indicating that the support foundation for the current bullish trend could be stronger than pure speculative bubbles. However, savvy investors always combine multiple indicators and remain cautious of market volatility. The NVT Golden Cross is a powerful tool, but it is only a part of the bigger picture. As the bullish trend continues, following this index and other key indicators will be essential.