Bitcoin’s price correction from its recent all-time high has sparked speculation in the crypto community, with many wondering whether the bull run will continue and what the next price move could be.
BTC is currently trading below the $95,000 mark, which is almost 7% below the all-time high above $99,000 recorded on November 22.
Golden Cross BTC NVT Forecast
With the price continuing to decline, CryptoQuant analyst known as Darkfost shared information about the current state of the market, focusing on a key on-chain metric: the NVT Golden Cross. This metric, which measures the relationship between market capitalization and transaction volume, has recently turned positive.
However, Darkfost cautions against interpreting this change as inherently bullish. He noted that while the current value of the NVT Gold Cross is low and does not pose significant risks, traders should keep an eye on it to avoid potential market pitfalls.
Notably, NVT’s Golden Cross, which quantifies whether Bitcoin’s market capitalization is outpacing transaction volume, could become a leading indicator of market trends. According to Darkfost, if the ratio rises to 2.2, it could mean that Bitcoin’s valuation exceeds its transaction utility.
In such cases, Darkfost noted that the market could witness a “reversion to the mean,” signaling potential short-shoring opportunities. CryptoQuant analyst added:
This scenario could lead to the start of a range pattern that could create a favorable environment for altcoins to perform.
Bitcoin Performance Outlook
With Bitcoin trading at $93,196 at the time of writing, down 3.3% over the past day, analysts have turned to their respective sources to assess what is happening with Bitcoin.
According to CoinGlass, the cryptocurrency market has experienced significant volatility, with approximately 191,493 traders liquidated in the last 24 hours, amounting to a total of $571.80 million.
IntoTheBlock, a renowned market analysis platform, recently suggested the main fundamental reason why Bitcoin is facing a correction.
In a post uploaded to X earlier today, the platform shows that “elevated funding rates” that signal “overleveraged positions” are contributing to the continued decline in the price of BTC.
IntoTheBlock noted that the good news is that “funding rates have largely normalized,” indicating that “the influx of leverage may have run its course.”
Meanwhile, from a technical perspective, Bitcoin may be preparing for a reversal. Renowned crypto analyst Ali recently took to his X account to report that TD Sequential for BTC is now giving a “buy signal.”
TD Sequential presents a buy signal on #Bitcoin $BTC hourly chart while a bullish divergence is forming against the RSI that could help #BTC recover to $95,000-$96,000!
Join me in this trade by signing up at @coinexcom using my referral link https://t.co/73n8mW9Y5p. pic.twitter.com/lKozxI8JVP
— Ali (@ali_charts) November 26, 2024
Featured image created with DALL-E, chart from TradingView
