The blockchain intelligence platform Santiment revealed in an X post today that Bitcoin’s (BTC) Network Value to Transaction (NVT) ratio has improved significantly. According to the post, this primary metric, which is used by many traders, has exited bearish territory.
📊 #Bitcoin’s NVT (Network Value to Transaction) ratio has improved significantly, one of @santimentfeed’s primary alpha #crypto market signals for traders. The metric indicates whether the amount of unique $BTC circulating is healthy relative to current market cap levels. 👍 pic.twitter.com/gu4CDDxMt9
— Santiment (@santimentfeed) November 16, 2023
Santiment also shared that this indicator signaled a turnaround after the market leader recorded an uptick in network activity in October. BTC’s price performance over the past 24 hours seems to have coincided with this bullish indicator. CoinMarketCap indicated that the cryptocurrency posted a 5.35% gain during the last day of trading.
This strong increase by BTC throughout the past day of trading was enough to flip the cryptocurrency’s weekly performance out of the red zone as well. Subsequently, BTC was up just under 2% over the past 7 days. As a result of the latest price movements, BTC was changing hands at $37,499.31.
Daily chart for BTC/USDT (Source: TradingView)
From a technical perspective, BTC was attempting to break out of a medium-term positive price channel. This ascending price channel was established after BTC’s price printed a series of higher highs and higher lows over the past 3 weeks.
During this period, BTC’s price broke above both the $34,100 and $36,900 resistance levels and continued to trade above these thresholds at press time. Should BTC close a daily candle above the channel within the next 48 hours, then it may attempt to surpass the subsequent resistance level at $39,200 in the next few days.
On the other hand, if traders begin to take their profits, then BTC may be at risk of breaking below the aforementioned $36,900 mark. This could then lead to it correcting to the lower level of the positive price channel before potentially plummeting down to $34,100 in the short term.
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