This is the weekly read of the NVT indicator .
Bitcoin has been following a descending wedge pattern since mid-January '19.
And in contrast, NVT has been oscillating in a tight range between 86-91.
I see an apparent disconnection between the market price and the underlying fundamentals.
And we can feel that disconnection when NVT is drawing a potential double...
The NVT indicator is anticipating a down move in BTC.
We can observe that the recent drop to 3400 has triggered the break of the NVT Trendline that we were monitoring for the last days.
That signal is anticipating a near retest of BTC bottoms around 3100 area.
If the test of the lows would fail, then we'd focus on the harmonic targets that sit below 3k area....
This is the most useful indicator I have found for identifying major market cycle tops and bottoms. As you can see we're still very far from a bottom. I expect this to flash a bottom signal somewhere in the $1,600-$2,200 range.
Today I'm bringing an interesting study of the BTC bottoming.
We'll zoom out to weekly chart to compare the potential bottoming of BTC through the perspective of NVT indicator .
If we draw the descending trendline that was broken after bottoming in 2015, we see that it was tagged twice and got rejected. And the bottom took place between these rejections.
At this...
Volatility is contracting in Daily Bitcoin to similar levels seen prior to the violent move down from 6000 to 4000.
In this study, we're going to use the NVT indicator as a tool to confirm when could happen the next breakout.
The NVT line has bottomed during December 2018 and already allows us to draw trendlines on it.
We can observe the red NVT trendline being...
First time posting an idea to trading view. Read the chart's description for proposed position and reasons.
1) NVT signal (woobull.com) shows bitcoin is over valued. We cannot enter a new bull market when this indicator shows over valuation of price. Retail investors need to be convinced we are bull before BTC can go to sub 6,000.
2) Crypto market moves mostly...
Formula used:
m = the logarithm of daily market cap
n = the logarithm of a 90 day MA of daily transaction volume in USD
output = the exponential function of (m / n)
Wider view:
Different formula: (1 + (1/n))^n
