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According to one strategist, NVT is a “buy the dip” chance that few get this week, as BTC/USD remains in the mid-$40,000 range.
This week is a make-or-break week for Bitcoin (BTC), as a classic proxy signals a market watershed.
BTC/USD is expected to reset at recent lows of just above $42,000, according to the network value to transaction (NVT) price.
NVT calls a significant BTC move
After a brief dip due to Elon Musk’s tweets, Bitcoin is attempting to reestablish firm support near its previous all-time highs from February.
Simultaneously, NVT, which is used to detect possible local price polarities, signals that the market is in for an incident close to early 2018 or last March’s cross-asset plunge.
The start of 2018 signalling the beginning of a year-long bear market, while Bitcoin, on the other hand, jumped from lows to fresh all-time peaks last year — a bull streak that experts say is still ongoing.
With the $42,000 dip bringing Bitcoin below NVT price, however, statistician Willy Woo drew attention to similar events throughout its 12-year history.
“Here is some hopium for those of you losing your minds,” Filbfilb, co-founder of trading suite DecenTrader, added about the indicator.
A “buy the dip” like few others?
NVT and its derivatives accurately predicted the exponential development of Q1 2021, as previously stated.
However, NVT is far from the only method in bulls’ arsenal for predicting a continuity, and new evidence shows a clear distinction between old and new BTC hodlers.
The price drop, for example, occurred as a result of panicked recent sellers selling at a loss. Older companies, on the other hand, eagerly absorbed the available liquidity.
“Translation: BTFD opportunities like this don’t come around very often,” analyst William Clemente said flatly in response to the NVT results.