This Bitcoin price index has just reached the “oversold” level for the 7th time in 8 years
Advanced NVT has hinted that Bitcoin is “very cheap” but has now printed a rare buyer’s flag.
A Bitcoin (BTC) price index makes BTC “seriously cheap” at $ 56,000, now in a rare oversold area.
In one tweet On December 6th, Philip Swift, the creator of the LookIntoBitcoin analytics platform, Philip Swift, returned with potential bullish signals from Bitcoin Advanced NVT Signals.
NVT increases deflation in the Bitcoin price process
Advanced NVT uses market capitalization and network volume to calculate whether Bitcoin is overbought or oversold at a given price.
In late November, when BTC / USD fell to $ 56,000, Swift suggested a rally.
The index then continued to lose spot prices thanks to last Friday’s liquidation. A possible plus, however, is the return of an “oversold” signal from NVT – which has only happened six times since 2015.
“The market is very scared at the moment, which makes me optimistic. Many indicators show that we are near a low point, ”he said.
“Advanced NVT Signals examines price versus onchain transactions. It was oversold just a few times before, resulting in a massive rally each time. ”
However, the strength of such a surge may have waned as Bitcoin reversed its course after rising about 6% to $ 51,500 overnight on Bitstamp.
Traders for BTC buyers: wait a week to “avoid hacking”
At press time, $ 51,000 was in the spotlight amid mounting signs from commentators that a new downtrend might be on the horizon.
Related: Bitcoin Can Drive People Insane for Months with a BTC Price Cap of $ 53,000 – Analyst
“Buy low until mid-40s. Don’t let yourself fall into the trap,” advises trader and analyst Pentoshi to Twitter followers.
I can see $ BTC Short trades back to 52k but I think if you wait a couple of days / weeks you will avoid the price. Buy between your mid 40s. Don’t get stuck. Do not see any reason to take new big steps here. I will wait for new offers to come to me pic.twitter.com/NS7J0PainD
– Pentoshi (@ Pentosh1) December 6, 2021
In the meantime, as Cointelegraph reported on Monday, there are many reasons to separate the spot price movement from Bitcoin’s underlying strength.
These include unprecedented high hash rates, coupled with a lack of sales – smaller sellers, on the other hand, have topped up their positions over the past week.
Only the whales seem to hedge their bets, as the stock market data shows.