The Bitcoin Network Value to Transactions (NVT) Golden Cross indicator is surging close to the historical topping zone, according to on-chain data.
Bitcoin NVT Golden Cross: A Tale of Overbought and Undervalued Coins 📈📉
In a recent CryptoQuant Quicktake post, an analyst discussed the latest trend in the Bitcoin NVT Golden Cross. This indicator is based on the NVT Ratio, which compares the market cap of the cryptocurrency to its transaction volume.
When the NVT Ratio is high, it suggests that the value of the asset is high compared to its ability to transact coins, potentially indicating an overbought condition. Conversely, a low NVT Ratio implies that the market cap has room to grow with respect to the transaction volume, hinting at a possible upside rebound.
The NVT Golden Cross, on the other hand, is a Bollinger-band like indicator that signals whether the NVT Ratio is close to a top or bottom by comparing its short-term trend to its long-term one.
As seen in the graph above, the Bitcoin NVT Golden Cross has been on a rapid growth trajectory, indicating that the market cap has been increasing relative to the transaction volume. The indicator has now reached a value of 1.98, which is not far from the 2.2 level (boundary of the red zone). Historically, crossing above this level has generally signaled overheated conditions for the cryptocurrency.
So far, this pattern has held true in 2025, with Bitcoin observing local tops alongside each of the three instances where the NVT Golden Cross breached the 2.2 mark.
“If the metric crosses 2.2 again, it may hint at a local top,” notes the quant. “But don’t rush to exit—historically, the metric has stayed above 2.2 for several days.” It now remains to be seen how BTC and the NVT Golden Cross will develop in the near future.
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2025-07-08 15:21