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Bitcoin – Where are the signs of a local bottom and a price reversal?

3min Read

With Bitcoin consolidating, the NVT Golden Cross metric highlighted a potential local bottom.

Bitcoin - Where are the signs of a local bottom and a price reversal?

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  • Bitcoin is facing a key resistance at $106k, while testing critical support at $101k
  • NVT golden cross at -2.21 historically signals local bottoms and potential price reversal

Bitcoin [BTC], at press time, seemed to be caught in a consolidation phase, with its price action fluctuating between the $101k and $106k range as its struggled to break through key resistance levels. However, an intriguing signal is now emerging from the Bitcoin NVT golden cross metric, with the same dropping to a 60-day low of -2.21.

So far, this has been a strong indicator of potential local bottoms, hinting that Bitcoin could be nearing a price reversal. As market conditions remain uncertain, this metric may provide valuable insight into whether Bitcoin is ready to shift direction.

Bitcoin fails to breach $106k, testing $101k range low

bitcoin

Source: X

Bitcoin’s attempt to break the $106k range high resistance fell short once again.

In fact, recent data from Rekt Capital illustrated a retest of the $101k range low, marked by a critical support level. Although temporary wicks dipping below this level are acceptable, maintaining a daily close above $101k is essential for sustaining the ongoing consolidation phase.

Furthermore, the blue diagonal trendline may serve as a volatile zone for any downward wicks during this retest. As the market continues its sideways movement, Bitcoin’s ability to hold this range will be crucial in determining its next directional move.

NVT golden cross hits -2.21: A potential local bottom

Bitcoin’s NVT Golden Cross plummeted to -2.21 – Its lowest in 60 days. This seemed to align with Bitcoin’s 7.5% price correction after peaking at $109k.

Historically, readings below -1.6 often indicate local bottom zones, and the press time value simply strengthened this probability. While not pinpointing an exact price, this suggested that Bitcoin may be trading near a potential reversal zone.

Source: Cryptoquant

Market participants should closely watch this threshold, as past trends highlighted that recoveries frequently follow such lows.

Coupled with the most recent bout of mini-correction, this puts up a compelling case for Bitcoin’s short-term bullish recovery amidst ongoing consolidation.


Read Bitcoin’s [BTC] Price Prediction 2025–2026


Price action and the impact of NVT golden cross

Source: TradingView

At press time, Bitcoin’s price was continuing to move within the $101k to $106k consolidation range, with a notable failure to breach the $106k resistance level. The daily chart highlighted a slight uptick as Bitcoin held steady above $105k, following its 7.5% correction from the $109k high.

And yet, despite this, the NVT Golden Cross hitting -2.21 signaled a potential local bottom, historically aligned with price reversals.

Finally, the RSI on the chart seemed to be hovering around 62, indicating mild bullish momentum but not an overbought condition. Additionally, the OBV suggested steady accumulation, reinforcing the possibility of a bullish breakout.

If Bitcoin maintains its position above $101k during retests, the NVT Golden Cross could act as a key indicator for a potential recovery.

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Samantha is a full-time crypto journalist with 2 years of writing experience in the field. Her key area of interest is the political ramifications of crypto-centric laws around the world. An avid market trader, Samantha also has a keen eye for price anomalies on trading charts.
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