Bitcoin (BTC) is facing a make or break moment this week as a classic indicator signals a price watershed.
According to the network value to transaction (NVT) price, BTC/USD is in line for a reset at recent lows of just above $42,000.
NVT calls a significant BTC move
After dipping on negative sentiment as a result of tweets from Elon Musk, Bitcoin is attempting to establish definitive support near its old all-time highs from February.
At the same time, NVT, which is used to discover potential local price polarities, suggests that the market is looking at an event similar to early 2018 or last March’s cross-asset crash.
The start of 2018 heralded a year-long bear market, while last year, Bitcoin conversely bounced from lows to new all-time highs — a bull run which analysts argue is still in action.
With the $42,000 dip bringing Bitcoin below NVT price, however, statistician Willy Woo drew attention to similar events throughout its 12-year history.
“Here is some hopium for those of you losing your minds,” Filbfilb, co-founder of trading suite Decentrader, added about the indicator.
A “buy the dip” like few others?
As Cointelegraph reported, NVT and its derivatives correctly called the explosive growth of Q1 2021.
NVT is far from the only tool in bulls’ arsenal for calling a continuation, however, and fresh data is also highlighting a distinct difference between old and new BTC hodlers.
The price dip, for instance, came as recent buyers sold in panic, overwhelmingly at a loss. Older entities, by contrast, happily bought up the available liquidity.
“Translation: BTFD opportunities like this don’t come often,” analyst William Clemente flatly commented on the NVT data.