It appears we have once again peaked on the NVT Signal indicator. As you can see by the 100% strike rate, we are nearing a top. Bitcoin's price, as of publishing, is within 10% of a new ATH.
NVT Ratio was created as an alternative to the traditional P/E Ratio that stocks have. NVT Signal is a derivation of NVT Ratio, and performs better than its predecessor.
What NVT Signal processes is bitcoin's market capitalization divided by a 3 month moving average of daily transaction revenue. What you end up with is a strangely accurate top/bottom indicator that does not utilize price directly.
Conceptually, under/overvaluation can be attributed to why it mirrors 'tops' and 'bottoms'. This means NVT Signal is less related to price momentum and more related to cultivating and culling profit, a cyclical process similar to harvesting seasons. Now it's time to cull.
Shorting Bitcoin is stupid not brave lol. Daytrading Bitcoin is a gamble. Simply buy and hold.
Totalfreedom1
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@luca1973, on the dips of course. Thing is I have no more fiat currency. Only Bitcoin
kenj1
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if the scamdemic had never happened i would’ve thought of this to be an impossibility, but alas here we are w the fed printing billions upon trillions, so i think there’s the definite possibility number go up.
patrickfx
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@kenj1 lol this chart failed so many times, it’s shit. Crypto is a ponzi, 12k 💥 crash
kenj1
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@patrickfx, i agree with you but your 12k crash call is seriously doubtful dude, all signs point to btc and the crypto market cap mooning like a mf'er. i haven't owned any btc since december 2017, bought at 7k and sold at 19,450. i might start trading with leverage on ftx tho tbh lol
CryptoAddict77
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It's not bravery, it's stupidity. Long is the better RR trade.
mjjbaiocchi
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Lol this is such a bogus chart with incorrect indicators
lonercapitalist
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So basically per this indicator, the absolute top is 20k? I'm skeptical