The NVT signal is an indicator specific for bitcoin.
If it turn red it means that the value of bitcoin is growing too much compared to an average of the money flowing through the blockchain of bitcoin in the last 90 days.
You can check on internet and you will find some useful insight about this indicator
All relevant top formations were associated with overbought NVT values, and high NVT values were always associated with big sell off.
Between few weeks following an overbought situation bitcoin lost between 56 and 82% of his value. Only 1 time bitcoin had a slow decline after an overbought situation loosing 70% of his value over 7 Months.
Would we have now a 6 of 6? There are good possibilities.
Why?
At parity of value of bitcoin the NVT turned again rapidly on red
It means that in 6 months the money flowing through the bitcoin is not increased that much. So this new price increase is again nothing more than speculation.
I admit that the price action looks bullish but on the daily we can clearly spot some analogies between actual price action and price action at ATH as well similar W movement on the NVT.
So basically
if bitcoin fail to invalidate this smoothed top between the next few hours or later tomorrow
we will have a red candle
like the January 2018 top
or the reverse of the december 3k bottom
BIO
If it turn red it means that the value of bitcoin is growing too much compared to an average of the money flowing through the blockchain of bitcoin in the last 90 days.
You can check on internet and you will find some useful insight about this indicator
All relevant top formations were associated with overbought NVT values, and high NVT values were always associated with big sell off.
Between few weeks following an overbought situation bitcoin lost between 56 and 82% of his value. Only 1 time bitcoin had a slow decline after an overbought situation loosing 70% of his value over 7 Months.
Would we have now a 6 of 6? There are good possibilities.
Why?
At parity of value of bitcoin the NVT turned again rapidly on red
It means that in 6 months the money flowing through the bitcoin is not increased that much. So this new price increase is again nothing more than speculation.
I admit that the price action looks bullish but on the daily we can clearly spot some analogies between actual price action and price action at ATH as well similar W movement on the NVT.
So basically
if bitcoin fail to invalidate this smoothed top between the next few hours or later tomorrow
we will have a red candle
like the January 2018 top
or the reverse of the december 3k bottom
BIO