Bitcoin (BTC) is signaling that a third “local bottom” is coming in 2024 as key BTC price indicators show signs of growth.
A recent study released on August 8 by on-chain analytics platform CryptoQuant shows a bullish move towards the Trading Golden Cross (NVT-GC) tool in network value.
BTC Price “Cooling Off Too Much”
Bitcoin was warned of another collapse this week on BTC/USD as the moving averages created a so-called “death cross.”
But the long-term picture remains uncertain as other market indicators point to a continued rebound.
One of them is NVT-GC, described by CryptoQuant as a volatility gauge similar to Bollinger Bands.
NVT compares Bitcoin’s market cap to its trading value over a specific period of time, while the Golden Cross version compares long-term and short-term NVT values.
As a result, a rough guideline for local market tops and bottoms was established, and three such bottom signals were generated in 2024.
“When the NVT GC rises above 2.2 points (red zone), it indicates that the price is overheating in the short-term trend and is in the local upper zone,” CryptoQuant contributor Burakkesmeci explained in one of his Quicktake blog posts.
“On the other hand, if NVT GC falls below -1.6 points (green zone), it indicates that prices are cooling too much and we are at a local bottom.”
Burakkesmeci noted that the previous two bottom signals, which occurred on January 18 and July 12, were followed by BTC price gains of 78% and 23%, respectively.
“We are currently in the regional bottom zone according to the NVT GC,” he concluded.
“Could the price go deeper? Yes, but we can expect the short-term trend to turn positive in this area.”
Bitcoin traders expect $60K support to fail
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin was trading around $60,000 throughout the weekend.
Related: MicroStrategy’s Bitcoin Gamble Surpasses Warren Buffett’s Warnings in 4 Years
Despite holding support in “after-hours” trading, BTC/USD failed to convince everyone, with some popular traders seeing a fresh downside potential.
Crypto Tony uploaded a chart showing the key levels for X, predicting that the next move will be back to $58,300.
Blockchain technology expert Elsa Boom added in a recent X commentary that “there could be one more retest of the lows before a full reversal,” comparing the current price action to when BTC/USD briefly dropped to $25,000 a year ago.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.