CryptoQuant: Bitcoin indicators show that it has "partially bottomed out."

ChainCatcher news, according to Cointelegraph, Bitcoin has issued its third "local bottom" signal in 2024. The latest research released by the on-chain analysis platform CryptoQuant on August 8 shows that the Network Value to Transactions Golden Cross (NVT-GC) tool indicates a bullish trend. Bitcoin's price is "overcooled."

This week, Bitcoin faces warnings of another price drop as the moving averages have formed what is known as a "death cross." However, other market indicators call for a continued rebound. One of these is the NVT-GC, which CryptoQuant describes as a volatility indicator similar to Bollinger Bands. NVT compares Bitcoin's market capitalization to the transaction value over a specific time frame, while the golden cross version compares the long-term and short-term NVT values. The result is a rough guide to local market tops and bottoms, and in 2024, three such bottom signals have already been generated.