When President Donald Trump tried to impose new tariffs on Canada, Mexico and China last week, Bitcoin (BTC) prices fell to around $91,500 amid fears of a global trade war. The maiden cryptocurrency quickly recovered from the flash crash, but a strong rejection in the $102,000 price range has attracted a lot of speculation about the future of the current Bull Run.
Bitcoin’s advanced NVT flashes to local bottom signal – what does this mean?
In a February 7th X post, famous cryptography analyst Burak Kesmeci shared some insights on Bitcoin Advanced NVT (network values for transactions).
In general, advanced NVT signals help traders identify excessive (low volume, high price) and overselling (large, low price) conditions in the Bitcoin market, predicting future market trends . According to Kesmeci, Bitcoin Advanced NVT scores 30.78 on May 2, 2024, August 5, 2024 (35.82), September 6, 2024 (35.81) and October 10, with a score of 30.78 on the past year. Shows local bottoms on four occasions. 2024 (38.21).
In each of these instances, BTC experienced a price recovery, but before that there was a short accumulation stage. Interestingly, the advanced NVT metric has dropped to 38.13 as Bitcoin crashed to $91,000 over the past week. This is a level that matches past local bottoms. The development shows that Bitcoin is due to rise in price.
However, while short-term price bounces are possible, historical data suggests that Bitcoin is likely to have been consolidated for some time before launching a powerful price rally. Interestingly, following the rejection at $102,000, BTC shows a movement bound to the range between $95,000 and $100,000. For a price rally to materialize, the Market Bulls have to overcome resistance at $102,000, with additional hurdles of $105,000 and $106,000.
BTC records $267 million in net flow
In other news, Blockchain Analytics Company IntotheBlock reports that the Bitcoin market has experienced $267 million in net exchange spills, which form a three-week outflow.
Consistent net outflows are a bullish signal that shows investors are moving their assets off the exchange, reducing potential sales pressures. That said, although the recent positive trends continue, the levels recorded in November 2024 indicate room for growth in terms of investor confidence.
At the time of writing, BTC is trading at $96,720, reflecting a 0.84% decline over the past 24 hours. Premier assets experienced turbulent trading week with a loss of 6.48% overall, pushing monthly profits to 2.90%. With a market capitalization of $1.9 trillion, Bitcoin remains the world’s largest cryptocurrency and the eighth largest asset in the world.
ISTOCK featured images, TradingView chart
