#Indicators

📊 $BTC Surges Past $120K, But NVT Indicator Hints at Deeper Story

$BTC is on a tear, climbing above $120,000 in the last 24 hours, signaling strong bullish momentum after a sharp dip earlier this week. But while the price soars, on-chain data reveals a fascinating twist.

CryptoQuant’s Sunflowr Quant points to the NVT Golden Cross, a metric comparing market cap to transaction volume, which is declining despite the rally. This suggests Bitcoin’s price surge is backed by real network activity—think actual transactions, not just speculative hype. A falling NVT ratio means transaction volume is outpacing market cap growth, a sign of healthy, organic adoption driving this run.

Meanwhile, CryptoQuant’s IT Tech highlights a shift in holder behavior. Long-term holders (HODLing >155 days) are starting to sell, while short-term holders are piling in. This “holder rotation” echoes patterns seen in April 2021 and November 2023, often signaling local tops or cooling periods.

📊 Key Takeaways:

• Bitcoin’s rally is supported by robust on-chain activity, per the NVT Golden Cross.

• Long-term holders are taking profits, while new players accumulate.

• Watch exchange inflows and funding rates for clues on what’s next.

Is this a sustainable rally or a setup for a pullback?