Bitcoin Signals Potential Bottom as Market Indicators Turn Bullish

Bitcoin Signals Potential Bottom as Market Indicators Turn Bullish

Bitcoin (BTC) is showing signs of reaching a “local bottom” during the recent sell-off in early August, according to the latest analysis from CryptoQuant. An insight published on the on-chain analytics platform suggests room for growth, noting bullish signals from the network value to transaction gold cross (NVT-GC) tool.

Despite recent warnings of a possible crash in BTC/USD, the NVT-GC tool, similar to Bollinger Bands, is signaling a possible recovery. This metric identifies local market tops and bottoms by comparing Bitcoin’s market cap to its trading value over time.

CryptoQuant contributor Burakkesmeci explained that if NVT-GC rises above 2.2 points, it signals an overheated price, while if it falls below -1.6 points, it signals an overcooling and a local bottom. The tool is currently showing a local bottom, similar to the signals from January 18 and July 12, which preceded price increases of 78% and 23%, respectively.

BTC is currently trading at $58,681, down 3.8% in the last 24 hours after losing the $60,000 level. However, Bitcoin has gained 7.58% in the last 7 days after a strong recovery from the lows of $49,500.