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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions
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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions

Glassnode Data Shows A Bullish Bitcoin Crossover Has Recently Occurred

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 11:29 am
3 mins read
Bitcoin Bull

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Data from Glassnode reveals a crossover in the Bitcoin NVT price model has recently taken place, something that has historically been bullish for the crypto’s price.

Bitcoin NVT Price 28-Day Curve Has Crossed Above The 90-Day

As per the latest weekly report from Glassnode, the BTC NVT price model has observed a bullish formation recently.

NVT stands for “Network Value to Transaction.” The NVT ratio is an indicator that measures the ratio between the Bitcoin market cap and the network transaction volume.

Generally, high values of the ratio suggest that the crypto is overvalued right now. While low ones may imply the coin is undervalued.

The “NVT price model” takes the two-year median of this metric and multiplies it by the current transaction volume.

“The resulting model thus establishes an implied valuation based on the current utilisation levels of Bitcoin for value settlement,” explains the report.

Related Reading | Bitcoin Bearish Signal: 600-Day MA Starts To Break Down

Now, here is a chart that shows the trend in the 28-day and 90-day period versions of the NVT price model:

Bitcoin NVT Price Model

Looks like positive transaction momentum is building up in the crypto | Source: Glassnode's The Week Onchain - Week 17, 2022

As you can see in the above graph, both the NVT price models seem to value Bitcoin at between $32.5k (90-day) and $36.1k (28-day). The two metrics also look to be bottoming out at the moment, and potentially showing a reversal.

Just recently, the faster 28-day curve has crossed over the slower 90-day version. Such a formation has historically been bullish for the coin’s price.

Related Reading | Specialists Expect Bitcoin Back To $65K By End Of Year, Survey Finds

On the other hand, whenever the 90-day NVT price model has moved over the 28-day line , a bearish flag has gone off instead.

The report notes that while the current crossover can be bullish for the price of Bitcoin, the signal does require the confirmation of time to show that positive momentum is in play.

BTC Price

At the time of writing, Bitcoin’s price floats around $40.5k, down 1% in the last seven days. Over the past month, the crypto has lost 9% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

The price of BTC seems to have surged up over the past twenty-four hours | Source: BTCUSD on TradingView

After plunging below the $39k level yesterday, Bitcoin has once more rebounded back above the $40k mark today.

It’s unclear currently whether this new positive momentum will last or if it will die out just like the last few attempts. However, if the NVT price model is anything to go by, in due time the crypto may observe some real movement up again.

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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