This Bitcoin price indicator is only “oversold” for the 7th time in 8 years

A bitcoin (Bitcoin) The $56,000 price indicator that makes BTC “looks very cheap” is now in a rare oversold zone.

in a tweet On December 6, Philip Swift, the creator of the analytics platform LookIntoBitcoin, returned to the potential bullish signal from Bitcoin’s advanced NVT signal.

Advanced NVT shrinks in Bitcoin price collapse

Advanced NVT uses market capitalization and network volume to calculate whether Bitcoin is overbought or oversold at a certain price point.

At the end of November, when BTC/USD had fallen to 56,000 U.S. dollars, Swift Suggest Rebound is as it should be.

Due to the cascade of liquidation on Friday, the indicator subsequently continued to be consistent with the spot price. However, one possible benefit is the return of NVT’s “oversold” clues-this has only happened six times since 2015.

“There is a lot of fear in the market right now, which makes me bullish. Many indicators show that we are close to the bottom,” he said.

“Advanced NVT signals focus on prices related to on-chain transactions. There have only been a few oversolds before, each time leading to a strong rebound.”

Nevertheless, the strength of this rebound may have faded, and Bitcoin reversed after rising by about 6% to $51,500 overnight.

Traders to BTC buyers: wait a week to “avoid bargaining”

As of press time, US$51,000 was the focus, and commentators strongly hinted that a new downside might enter soon.

related: Bitcoin may be “crazed” for months with a BTC price cap of $53,000-Analyst

“Buy in the mid-1940s. Don’t get stuck,” Pentoshi, a trader and analyst, advises Twitter fans.

I can see it Bitcoin Short-term trading is back to 52k, but I think if you wait a few days/week, you will avoid bargaining. Purchased in the mid-1940s. Don’t be trapped. There is no reason for a new long ATM here.Waiting for a new deal to come to me pic.twitter.com/NS7J0PainD

— Pentoshi (@Pentosh1) December 6, 2021

As Cointelegraph Report At the same time, there were many reasons to separate spot price movements from Bitcoin’s potential strength on Monday.

These include the highest hash rate in history and the general lack of selling-in contrast, smaller holders have been increasing their positions in the past week.

Only the whales seem to hedge their bets because Prove By exchanging traffic data.