Bitcoin's price is on the rise, yet the NVT Golden Cross indicator is surprisingly moving downward. Typically, as prices rise, the NVT ratio is expected to move upward since it measures the relationship between network transactions and market value. However, the current decline in NVT during a price increase indicates a stronger and faster-than-expected growth in Bitcoin's on-chain transaction volume.
This situation can be viewed positively by investors, suggesting that the price increase is supported by genuine economic activity rather than mere speculation. In other words, real users and actual financial transactions on the network are making this uptrend more sustainable.
In conclusion, the current rise in BTC indicates a healthy market built on strong fundamentals. Such movements often point toward more lasting and stable long-term growth. Investors should closely monitor these indicators to better understand market trends.
Written by SunflowrQuant
