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Bitcoin Looks Extremely Oversold with NVT Lowest for the Entire Rally: Analysis

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Sat, 05/15/2021 - 19:43
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Yuri Molchan
Recent data from Glassnode shows that Bitcoin is extremely oversold in the market
Bitcoin Looks Extremely Oversold with NVT Lowest for the Entire Rally: Analysis
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Chart provided by popular analytics platform Glassnode shows that Bitcoin NVT (Network Value to Transactions) Ratio has been at the lowest point during the entire BTC rally that began in October last year and continued in January, pushing Bitcoin first above the $20,000 level and the driving it on to $40,000 and then $64,000 zone.

Bitcoin NVT can be calculated by dividing the network value (market capitalization) by the volume of USD transferred on the BTC blockchain per day and it shows if Bitcoin is overbought or oversold.

As per the chart, BTC NVT is almost as low as it was in March last year, when the Black Thursday took place, pushing equity and crypto markets deep down.

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Back then, Bitcoin lost 50 percent in one day and plunging below the $4,000 level. Crude oil quotes plummeted below zero.

The current low level of Bitcoin NVT clearly demonstrates that the king crypto is very much oversold.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.