{"id":382764,"date":"2019-05-17T20:00:09","date_gmt":"2019-05-17T20:00:09","guid":{"rendered":"https:\/\/ktsl888.com\/?p=382764"},"modified":"2019-05-18T01:15:08","modified_gmt":"2019-05-18T01:15:08","slug":"ntv-divergence-reaches-bull-market-mania-levels-bitcoin-price-increase-not-organic","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/ntv-divergence-reaches-bull-market-mania-levels-bitcoin-price-increase-not-organic\/","title":{"rendered":"NVT Divergence Reaches Bull Market \u201cMania\u201d Levels, Bitcoin Price Increase Not Organic"},"content":{"rendered":"

The early-April Bitcoin price rally<\/a> that transformed into a mini-parabola, was fueled by a powerful short squeeze and was strategically orchestrated by a single actor. The powerful move did indeed incite much FOMO and bullish sentiment throughout the market, but such a rise in value over such a short period of time rarely feels organic.<\/span><\/p>\n

Smart and cautious investors often look to a variety of data points to understand the underlying value of an asset, as part of their technical and fundamental analysis. One such tool, NVT, is showing that price has diverged significantly from the network value to transactions ratio \u2013 or how much value is being transmitted across the Bitcoin network.<\/span><\/p>\n

Bitcoin NVT Ratio and Price Divergence Gives Strong Sell Signal<\/h2>\n
Cryptocurrencies being an emerging, new, and misunderstood technology that\u2019s value and use case isn\u2019t even close to being fully realized, makes giving the assets an accurate valuation incredibly difficult. To assist with fundamental analysis of Bitcoin and other cryptocurrencies, crypto analyst Willy Woo created NVT<\/a> \u2013 Bitcoin\u2019s network value to transactions ratio, or how much value is being sent across the network. The tool is used to give a more accurate depiction of the asset\u2019s actual in-value.<\/span><\/p>\n
Related Reading | Crypto Analyst: Bitcoin Price Now Above Ideal Buying Zone, Shortest Duration Yet\u00a0<\/a><\/strong><\/em><\/p>\n
Large divergences between Bitcoin price<\/a> and the NVT ratio have usually preceded a massive dump, as NVT can help determine when Bitcoin is vastly overvalued compared to how much value is being transmitted across the network.<\/span><\/p>\n
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If you want to see just how high the price exceeded what's normal for on chain capital flows, NVT Caps paints a very clear picture. The short squeeze pushed price mismatch to late bull market "mania" levels before the blow off today, we are still well above organic levels. pic.twitter.com\/U4PeA2zCTH<\/a><\/p>\n
— Willy Woo (@woonomic) May 17, 2019<\/a><\/p><\/blockquote>\n