Compass Investments

– In this article. Bitcoin could hit a third low in 2024.

The golden cross of network transaction value (NVT-GC) is showing signs of cooling.

Bitcoin is trading around $60,000, but some traders are predicting it could fall as low as $58,300 before reversing.

Bitcoin’s decline suggests that a third local low will occur in 2024, as key bitcoin price indicators show potential upside. On August 8, a new analysis from CryptoQuant shows that the golden cross between network value and transactions (NVT -GC) is trending bullish.

The bitcoin price is showing signs of cooling, and there are warnings that BTC/USD will fall again this week as the moving average indicates a death cross.

Despite these concerns, other indicators point to a possible rebound. The Network Value to Transactions Golden Cross (NVT-GC), a volatility indicator similar to Bollinger Bands, is showing signs of a localized bottom. This tool compares the market value of bitcoin to the value of transactions over a certain period of time, and its version, the Golden Cross, contrasts the long-term value of NVT and the short-term value of NVT.

CryptoQuant author Burakkesmechi explains that an increase in NVT-GC above 2.2 (red zone) indicates that the bitcoin price is overheated and approaching a local top. Conversely, a value below -1.6 (green zone) indicates that the price has cooled too much and has reached a local bottom.

The local bottom signals occurred three times in 2024, most recently on January 18 and July 12, after which the price of BTC rose by 78% and 23% , respectively.

It is currently in the local bottom area, according to NVT GC. Can the price rise? Yes, but we should expect the short-term trend to turn positive.

According to TradingView, bitcoin traded around $60,000 over the weekend. Some support levels have held, but not all traders are convinced. Popular trader Crypto Tony predicts it could fall to $58,300 before turning around.

At the same time, blockchain expert Elia Boom suggests a possible final retest of the lows before a full recovery, drawing parallels with past BTC/USD price movements.

Mikybull Crypto and Rekt Capital are among the crypto-enthusiasts who predict BTC’s imminent rise based on its past performance. The former points to a similar correction in Q3 2023, followed by a new bullish rise.