Onchain Edge
Bitcoin's NVT Golden Cross at -2.37: What It Means for Investors
The NVT golden cross number for Bitcoin is now at -2.37. When this number goes below 2, it usually means good news for Bitcoin's price. This has happened 5 out of 6 times before, and it often shows that Bitcoin's price might jump up soon. But, there was one time it didn't work out. On April 29, 2021, even though the NVT golden cross was lower than 2, Bitcoin's price actually fell from $55,000 to $33,000. Here's what seems like a good idea now: When Bitcoin gets close to $50,000, it might be smart to take some money out. The best time to really invest a lot was when Bitcoin was at $20,000. Now, taking some profit makes sense. I also noticed something not so great on the daily chart of Bitcoin. It fell below a line that it had been following. And on the chart that shows Bitcoin every three days, it doesn't look too good either. This chart shows Bitcoin broke below another line that started in October. The next strong place where Bitcoin might not go lower is between $34,000 and $36,000. Also, there's a big warning sign on the VMC indicator – a strong bearish divergence is showing up. This means the strength of the trend in Bitcoin's price is getting weaker. So, it looks like Bitcoin's price might go down a bit first, maybe around the $35,000 area.