According to a recent analysis report of Cryptoquant, although the price of Bitcoin seems to be rising all the time, NVT Gold Cross has just exceeded the normal level recently. The surge of NVT gold cross index indicates that short positions are coming.
Cryptoquant, an encryption analysis network, recently wrote on Twitter that "the price of Bitcoin has risen, but the NVT selling area has been triggered." In the past, when the indicator exceeded 2.2, the sell area was always triggered. If the indicator is lower than minus 1.6, it is a bull signal.
However, this indicator has recently broken through 2.2, currently 2.44, and is still rising. Therefore, Bitcoin is already in the selling area. In May this year, when the NVT gold cross index hit the 2.7 level, people noticed a similar situation. A few days later, in early June, the value of Bitcoin fell from $30000 to $20000.
As this indicator has exceeded the standard threshold, analysts have concluded that Bitcoin may become a bear market in the next 10 days.
At the time of writing this report, Bitcoin was in the bull market trend that began 72 hours ago, hitting nearly $172000. The price of BTC soared from $167800 to $169800. In the same 24 hours, Bitcoin hit a high of $172000
However, according to NVT's analysis, Bitcoin is likely to decline in the next few days. Several analysts have similar views on the price of BTC. Analyst @ woonomics mentioned that Bitcoin has a long way to go before it hits the bottom and stirs up a longer bull market@ Cryptocapo said bitcoin would form a bottom at $12000. Many people believe that BTC may fall below 10000 dollars in the next few days or weeks.
In the past 24 hours, the general encryption market continued to record some small bull markets. The market value increased by 0.27%. However, there are some general price uncertainties in some assets.
Ethereum started the day's trading at $1272. At the time of writing this report, the transaction price of this coin was about the same. However, the highest 24-hour price of this coin is $1301.
BNB coins showed negative growth today, with a slight decline in price. The value of the coin dropped 1.98% from $296.8 to $290.7.
Dogecoin also recorded a small drop in prices in the past 24 hours. The coin rose from $0.1024 to about $0.102. In the past seven days, Doge has been one of the biggest gainers, up more than 25%.
The value of Cardano coin has increased by about 0.4%, from 0.314 dollars to 0.315 dollars in the past 24 hours. However, like other coins, this coin also soared at some time of the day, reaching a high of $0.32.
XRP recorded some small losses in the past day. The coin plummeted from $0.399 to $0.396 - a slight difference. Cryptoquant's NVT signal report means that investors in some coins should be prepared for a serious drop in BTC prices, which will also affect crypto.
As the performance of the encryption market is still uncertain in the coming weeks, the latest report shows that the market is increasingly worried due to more and more restrictions on loans. The Wall Street Journal reported that the Tether network kept lending its coins to others, which caused the question whether they had enough liquidity in the crisis. This concern may pile up and lead to a serious FUD impact on the encryption market in the coming weeks.
