BTC was relatively cheap at $56,000 compared to network activity. Analysts have expressed several opinions in this regard. In a tweet on November 24, Philip Swift, the creator of LookIntoBitcoin, highlighted the bull flag on the Bitcoin Advanced NVT Signal.
Advanced NVT uses network volume and bitcoin market capitalization to determine whether BTC is oversold at a specific price or over-purchased. As Swift explains in the Metric introduction, it is based on the original NVT. It also takes into account changes in investors’ habits as Bitcoin matures over time.
Advanced NVT Bitcoin is the total market capitalization of a split network transaction volume over the 90-day moving average. At this point, it is in the depths of the over-sold area, which a price increase will soon follow. According to Swift, Bitcoin looks very cheap compared to network activity in the long run. However, a strong reaction should come in the not too distant future.
Advanced NVT is currently at its minimum level since the starting of 2020; Except for last year’s coronavirus accident and the 2021 miner shutdown in China. The NVT is far from a chain indicator that indicates a trend reversal under current conditions. RSI values also point to a rise in the BTC price, while others say a decline, even though sentiments are not declining.
Glassnode also noted a rare type of STHs controlling the littlest amount of bitcoin in the past three years. Prices remain relatively close to the all-time maximum. STH Wallet is someone who has spent Bitcoin in the last 155 days. A small amount of STH is classic at early bull markets and the end of bear, usually after a deep accumulation period.
BTC Future
Some experts suggest that the dynamics of Bitcoin are so volatile that it is possible to climb to the $50,000 mark, which would be a signal to buy more. In November, the most popular digital currency fell sharply and broke a record.
It is noteworthy that even a few weeks ago, many analysts predicted that Bitcoin would reach a 6-digit rate by the end of the year. Let’s consider the unstable dynamics and the fact that there is only one month left until the end of the year. This forecast is not so relevant.
The Bitcoin record seemed to sign that the rate would increase significantly again; however, data from this stage does not provide a helpful growth score. However, these changes do not rule out another record. So before the end of the year, there is still time to change events.
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