CryptoQuant: Bitcoin indicators show a "local bottom" has been reached

ChainCatcher news, according to Cointelegraph, Bitcoin issued its third "local bottom" signal in 2024. The latest research released by the on-chain analysis platform CryptoQuant on August 8 shows that the Network Value Transaction Golden Cross (NVT-GC) tool is showing a bullish trend. Bitcoin prices are "overly cooled".

This week, Bitcoin faces warnings of another price drop as the moving average line presents a so-called "death cross". However, other market indicators call for continued rebound. One of them is NVT-GC, which CryptoQuant describes as a volatility indicator similar to Bollinger Bands. NVT compares bitcoin's market value with its transaction value over a specific time range, 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 there have already been three such bottom signals.