Bitcoin (BTC) price may be on the verge of sudden price fluctuation this week, according to a network indicator to consider.
While the BTC / USD pair sees its lowest value just above $ 42,000, it is only a matter of time before the market restarts, according to the Network Value to Transaction (NVT) indicator.
NVT indicator points to a sharp BTC price move
Following the tweets sent by Elon Musk, Bitcoin is trying to gain support in a region close to the all-time highs observed in February.
NVT, used to identify potential polar regions in price, suggests that a situation similar to the market conditions of early 2018 and the big crash in March last year could occur.
The bear market, which lasted about a year after the start of 2018, emerged. Last year, Bitcoin jumped to its highest after hitting its lowest level. Moreover, analysts still argue that this rally continues.
After a drop in the bitcoin price of up to $ 42,000, the NVT price also went below, by statistician Willy Woo evaluated. Woo pointed out that the cryptocurrency has experienced similar events in its 12-year lifetime.
Minority buying from the bottom
As Cointelegraph reported, NVT and its derivative indicators gave many clues about the rise in price in the first quarter of 2021.
Although NVT does not provide insight into the continuity of the bull market, there are clear differences between old and new BTC investors. emphasizes.
For example, the decline in the price is due to the panic selling of the buyers in the recent period, and has resulted. On the other hand, long-term investors gained additional leadership from the falling price.
“What this means is that bottom-line buying opportunities are very common,” analyst William Clemente said of the NVT data. said.