Bitcoin’s price took a dip recently, dropping to around $91,500 amidst global trade war worries. While it quickly bounced back, the failure to break through $102,000 has many wondering what’s next for the crypto king.
Is Bitcoin Ready to Rally? A Look at the Advanced NVT
Crypto analyst Burak Kesmeci pointed to Bitcoin’s Advanced NVT (Network Value to Transactions) metric as a potential indicator. This metric helps gauge whether the market is overbought or oversold.
Kesmeci noted that four times in the past year (May 2nd, August 5th, September 6th, and October 10th, 2024), the Advanced NVT signaled a local bottom, followed by price recovery. The recent drop to $91,000 saw the NVT hit a similar level, suggesting another potential bottom.
While a quick price jump is possible, history suggests Bitcoin might consolidate for a while before a significant rally. Currently, it’s trading between $95,000 and $100,000, needing to break through resistance at $102,000, then $105,000 and $106,000 for a major upward trend.
Big Money Moving Out of Exchanges
Adding to the positive signs, IntoTheBlock reports that $267 million in Bitcoin flowed out of exchanges over three weeks. This is generally bullish, as it suggests less selling pressure. However, this outflow is lower than seen in November 2024, hinting there’s still room for increased investor confidence.
The Current Situation
At the time of writing, Bitcoin is trading at $96,720, down slightly for the day but still up for the month. It’s had a rough week, losing about 6.5%, but remains the largest cryptocurrency and one of the world’s top eight assets by market cap.
