On August 12, Bitcoin sent out a third "local bottom" signal in 2024. The latest research released by the on-chain analysis platform CryptoQuant on August 8 showed that the network value and transaction golden cross(NVT-GC) tool showed a bullish trend. Bitcoin prices are "overcooled".
This week, Bitcoin faced warnings of another price drop as moving averages formed a so-called “death cross.” Yet other market indicators called for a sustained rally.
One of these is NVT-GC, which CryptoQuant describes as a volatility indicator similar to Bollinger Bands. NVT compares Bitcoin’s market cap to its trading value over a specific timeframe, while the golden cross version compares long-term and short-term NVT values. The result is a rough guide to local market tops and bottoms, and in 2024, three such bottom signals have already been generated.
