CryptoBitcoinBitcoin Shows Signs of Local Bottom Amid Recent Sell-Off

Bitcoin Shows Signs of Local Bottom Amid Recent Sell-Off

Bitcoin (BTC) is potentially reaching a “local bottom” following a recent decline in early August, according to a recent CryptoQuant analysis. The platform’s on-chain analytics highlighted bullish indicators from the network value to transaction golden cross (NVT-GC) tool, suggesting there may be room for future growth.

Despite concerns about a possible BTC/USD breakdown, the NVT-GC tool, which functions similarly to Bollinger Bands, signals a potential rebound. This tool evaluates Bitcoin’s market capitalization relative to transaction value, helping to pinpoint market highs and lows.

CryptoQuant analyst Burakkesmeci noted that an NVT-GC reading above 2.2 points indicates an overheated market, while a drop below -1.6 points points to excessive cooling and a local bottom. Currently, the tool shows a local bottom, echoing signals from January 18 and July 12, which were followed by price increases of 78% and 23%, respectively.

As of now, Bitcoin is trading at $58,681, reflecting a 3.8% decrease over the past 24 hours after slipping below the $60,000 threshold. However, Bitcoin has rebounded with a 7.58% gain over the past week, recovering from a low of $49,500.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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