Bitcoin (BTC) is facing a turning point this week as a classic indicator marks a price dividing line.
According to the price of the ratio of network value to transactions (NVT) The BTC / USD pair is about to readjust to recent lows of just over $ 42,000.
NVT calls for a significant BTC move
After being immersed in the negative vibe as a result of Elon Musk’s tweets Bitcoin is trying to hit final support near its old all-time highs in February.
At the same time, the NVT, with which possible local price polarities are determined, suggests that the market is expecting a similar event in early 2018 or the crossover asset crash of last March.
The start of 2018 ushered in a year-long bear market, while Bitcoin, conversely, bounced from lows to new all-time highs last year, a bull run that analysts say is still in the works.
With the $ 42,000 decline that caused Bitcoin to drop below NVT price, Statistician Willy Woo named it AttentionAbout similar events in its 12 year history.
“Here’s some hope for those who are mad”, added Filbfilb, co-founder of the DecenTrader trading suite, on the indicator.
Is buying a “buy the fall”? so few?
As Cointelegraph reported, The NVT indicator and its derivatives rightly named the explosive growth in the first quarter of 2021.
However, The NVT is far from being that Only toolÂ in the cops’ arsenal to demand a sequel, and the latest data also shows a marked difference between old and new BTC hodlers.
For example, the drop in prices is due to the fact that recent buyers have sold in a panic majority with losses. The older companies, on the other hand, happily bought the available liquidity.
“Translation: Opportunities to buy autumn like this do not arise often.”, commented Analyst William Clemente insists on the NVT data.