NewsBTC 2025-05-22 05:30:41

Bitcoin Sets New ATH, But This Metric Says No Overheating Yet

The Bitcoin Network Value to Transactions (NVT) Golden Cross could indicate that the asset isn’t overheated yet, despite its price marching to a new all-time high (ATH). Bitcoin NVT Golden Cross Still Outside Of Overbought Zone In a CryptoQuant Quicktake post, an analyst has talked about the latest trend in the NVT Golden Cross for Bitcoin. The NVT Ratio is an on-chain indicator that keeps track of the ratio between the BTC market cap and transaction volume. If the utility of the network (measured in terms of the transfer volume) is considered as a reflection of its ‘true’ value, then this ratio can be used for judging whether the price is undervalued or overvalued. Related Reading: $3.8 Billion In Capital Inflows Behind Ethereum’s Post-Pectra Surge, Data Shows When the value of the indicator is high, it means the value of the network (that is, the market cap) is high compared to its ability to transact coins. Such a trend may be a sign that the asset is becoming overpriced. On the other hand, the indicator being low could imply room for growth in the cryptocurrency’s market cap, as its value is low when compared to the transaction volume. In the context of the current topic, a derivative form of the NVT Ratio is the indicator of interest. This metric, known as the NVT Golden Cross, is a signaling indicator for the NVT Ratio similar to the Bollinger Bands, telling us about whether the ratio’s value is near a top or bottom. The NVT Golden Cross compares two moving averages (MAs) of the NVT Ratio in order to determine this: the 10-day MA to gauge the short-term trend and the 30-day MA for the long-term one. Now, here is a chart that shows the trend in the Bitcoin NVT Golden Cross over the last few months: As displayed in the above graph, the Bitcoin NVT Golden Cross has been on the rise recently as the cryptocurrency’s price has rallied to a new ATH. At present, the indicator is sitting at a value of 1.5. In the chart, the quant has highlighted two zones for the metric that have been of significance in the past. The region beyond 2.2 (shaded in red) corresponds to the territory where tops generally occur for BTC and that under -1.6 (green) to the bottoming zone. Related Reading: Is Bitcoin Ready For New ATHs? What The Charts Say Clearly, despite the recent uptrend, the NVT Golden Cross hasn’t yet broken into the red zone, a potential sign that the cryptocurrency may still not be too overpriced. Naturally, this could allow room for the run to continue further. BTC Price Bitcoin set a new record earlier today as its price briefly went to $109,400, surpassing the previous ATH around $109,200. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

Meist gelesene Nachrichten

500 Bitcoin Partnership from Crypto Mining Co...
2025-05-22
Coming soon: Kraken takes Wall Street onchain...
2025-05-22
FIFA Boots Up Its Own Blockchain on Avalanche...
2025-05-22
Keeta price prediction – KTA ready to rebound...
2025-05-22
Ethereum Whale Sells 1,000 ETH Worth $2.65 Mi...
2025-05-22
Bitcoin Giant Strategy to Offer $2.1 Billion...
2025-05-22
Ripple Sees Abnormal 101% Spike in USD Stable...
2025-05-22
Top 5 Meme Coins to Watch in 2025: Why Shiba...
2025-05-22

Ähnliche Neuigkeiten

Dogecoin Bulls Fuel 66% Volume Surge, Price Eyes $...
22 May 2025
Apple, Tesla, Nvidia said to be offered as tokeniz...
22 May 2025
Why MIND of Pepe is the Best Crypto to Buy Now as...
22 May 2025
Expert Explains Why XRP Will Go Much Higher
22 May 2025
Cryptocurrencies Take Center Stage as U.S. Economi...
22 May 2025
AI for crypto prediction: Myth or Reality?
22 May 2025

Lesen Sie den Haftungsausschluss : Alle hierin bereitgestellten Inhalte unserer Website, Hyperlinks, zugehörige Anwendungen, Foren, Blogs, Social-Media-Konten und andere Plattformen („Website“) dienen ausschließlich Ihrer allgemeinen Information und werden aus Quellen Dritter bezogen. Wir geben keinerlei Garantien in Bezug auf unseren Inhalt, einschließlich, aber nicht beschränkt auf Genauigkeit und Aktualität. Kein Teil der Inhalte, die wir zur Verfügung stellen, stellt Finanzberatung, Rechtsberatung oder eine andere Form der Beratung dar, die für Ihr spezifisches Vertrauen zu irgendeinem Zweck bestimmt ist. Die Verwendung oder das Vertrauen in unsere Inhalte erfolgt ausschließlich auf eigenes Risiko und Ermessen. Sie sollten Ihre eigenen Untersuchungen durchführen, unsere Inhalte prüfen, analysieren und überprüfen, bevor Sie sich darauf verlassen. Der Handel ist eine sehr riskante Aktivität, die zu erheblichen Verlusten führen kann. Konsultieren Sie daher Ihren Finanzberater, bevor Sie eine Entscheidung treffen. Kein Inhalt unserer Website ist als Aufforderung oder Angebot zu verstehen