#Indicators
đ $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.
CryptoQuantâs Sunflowr Quant points to the NVT Golden Cross, a metric comparing market cap to transaction volume, which is declining despite the rally. This suggests Bitcoinâs price surge is backed by real network activityâthink 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, CryptoQuantâs 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 âholder rotationâ echoes patterns seen in April 2021 and November 2023, often signaling local tops or cooling periods.
đ Key Takeaways:
⢠Bitcoinâs 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 whatâs next.
Is this a sustainable rally or a setup for a pullback?