The recent decline in Bitcoin ’s price, following its peak above $99,000 on November 22, has ignited debate within the cryptocurrency community. Currently trading below $95,000, Bitcoin has seen a nearly 7% drop, prompting many investors to reflect on the sustainability of the ongoing bull market and the potential direction of the asset’s next move.
An important development in this market analysis is the NVT Golden Cross, a significant on-chain metric that gauges the relationship between Bitcoin ’s market capitalization and transaction volume. Recently, this metric has turned positive, signaling a shift that some analysts view as noteworthy. Despite this change, some experts caution against jumping to conclusions about a bullish trend, emphasizing the importance of monitoring this indicator for potential market risks.
While the current NVT Golden Cross value remains low and unlikely to trigger immediate concerns, there is speculation that if it rises to 2.2, it might signal that Bitcoin ’s valuation is outpacing its genuine transactional utility. This scenario could foreshadow a “reversion to the mean,” leading to positioning opportunities in the market, particularly for short sellers. It may also establish a range-bound market that could benefit alternative cryptocurrencies.
Currently, Bitcoin is valued at approximately $93,196, with a 3.3% decline over the past day, set against a backdrop of considerable market volatility. Data indicates that around 191,493 traders were liquidated recently, amounting to about $571.8 million. Analysts point to elevated funding rates as a key factor contributing to Bitcoin ’s ongoing price decline. However, there are signs that funding rates are starting to normalize, suggesting a potential stabilization in the market dynamics.
From a technical standpoint, there are indications that Bitcoin may be on the brink of a reversal. Observations from market analysts reveal that Bitcoin ’s hourly chart is displaying a buy signal, supported by a bullish divergence in the relative strength index (RSI) readings, which could pave the way for a rebound back toward the $95,000 to $96,000 range.
