Bitcoin (BTC) prices experienced a turbulent week amidst global trade war fears, falling to around $91,500 before recovering. However, a strong rejection at the $102,000 price zone has drawn speculation on the future of the current bull run.
Renowned crypto analyst Burak Kesmeci recently shared insights on the Bitcoin Advanced NVT (network value to transaction) metric, which evaluates BTC’s market valuation relative to its transaction volume. This metric helps traders identify overbought and oversold conditions in the Bitcoin market. According to Kesmeci, the Bitcoin Advanced NVT has indicated local bottoms on four occasions in the past year, with scores ranging from 30.78 to 38.21.
Interestingly, as Bitcoin crashed to $91,000 in the past week, the Advanced NVT metric fell to 38.13 – a level consistent with past local bottoms. This development suggests that Bitcoin is due for a price rally. However, historical data indicates that BTC may remain in consolidation for some time before launching a strong price rally. For a rally to materialize, market bulls must overcome resistance at $102,000, with further hurdles at $105,000 and $106,000.
In other bullish news, blockchain analytics company IntoTheBlock reports that the Bitcoin market experienced $267 million in net exchange outflows, forming a three-week streak of outflows. Consistent net outflow is a positive signal indicating investors are moving their assets off exchanges, reducing potential selling pressure. While the recent outflow volume is lower than levels recorded in November 2024, it still indicates room for growth in terms of investor confidence.
At the time of writing, BTC trades at $96,720, reflecting a 0.84% decline in the past 24 hours. The premier asset experienced an overall loss of 6.48% for the week, pushing its monthly gains to 2.90%. With a market cap of $1.9 trillion, Bitcoin remains the largest cryptocurrency and the eighth-largest asset in the world.
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As the Bitcoin Advanced NVT metric signals a potential local bottom, investors and traders should keep a close eye on BTC’s price action in the coming days. A successful break above key resistance levels could confirm the start of a new price rally, while failure to do so may result in further consolidation or a potential trend reversal.
Tags: Bitcoin, BTC price, Advanced NVT, on-chain metrics, exchange outflows, crypto market analysis
Source: https://bitcoinist.com/bitcoin-key-metric-signals-local-bottom-price-rally/