Bitcoin (BTC) Price Prediction: NVT Golden Cross Signals Oversold, But Will It Recover?

Over the weekend, Bitcoin (BTC) ‘s price circled between $54,424 and $58,215. However, as the new week begins, the coin presents an interesting

Bitcoin (BTC) price is showing signs of recovery after hitting an overselling point. According to IntoTheBlock’s Exchange On-chain Market Depth, there are more bids than asks at current prices. This could lead to a BTC price increase in the coming days.

The metric in question is the NVT Golden Cross, which is a variant of the NVT ratio used to gauge whether BTC has hit a top or bottom. Values of 2.20 or higher indicate an impending downturn, while readings below -1.60 suggest that BTC is nearing or hitting a bottom.

At present, the NVT Golden Cross is at -1.39, which could be a sign of overselling. This selling pressure might be linked to Mt. Gox's recent BTC movement.

Additionally, the German government's numerous transfers also contributed to this selling pressure. However, if overselling occurs, it could foreshadow a price rebound.

According to IntoTheBlock, market participants have placed bids for 22,075 BTC at an average price of 55,671. At the same time, the total BTC set to be offloaded is 11,514 at an average price of $55,673.

This higher value for BTC being bought could help prevent another downturn and aid in recovering some of its recent losses.

Moreover, the Liquidation Heatmap from Coinglass suggests that BTC price could be headed higher in the short term.

This heatmap uses color variations to indicate the intensity of buy and sell orders in the market. Cooler colors like purple indicate a low level of activity. But when colors like green or yellow appear, it means the liquidity is concentrated at a price level.

By analyzing the heatmap, one can spot potential areas of interest, resistance, and support levels.

According to Coinglass, there is a high level of liquidity at $57,516 and another at $58,037. This high level of liquidity could attract a BTC price increase in these regions.

Furthermore, the Relative Strength Index (RSI), which measures momentum, also supports this potential. On the daily BTC/USD chart, it is at 34.61.

When the indicator’s reading is below 30.00, it is considered oversold. And when it is above 70.00, it is overbought.

Therefore, the RSI's position suggests that BTC has left the oversold region and aims for substantial recovery.

Going by the positions of the Fibonacci Retracements, which spot supports and resistance points, BTC may retest $58.251 if it breaks through $57,016.

Meanwhile, RektCapital, a pseudonymous analyst on X, also commented on BTC price action. According to him, the coin may have left sideways trading and is now closing in on re-accumulation.

“Bitcoin is on the cusp of performing its first Weekly Candle Close below the Re-Accumulation Range Low for the first time in the over four months that this range has existed,” Rekt Capital posted.

However, BTC price is still trading below the 20-day Exponential Moving Average (EMA) on the daily time frame. The 20-day EMA is a technical indicator that tracks price changes to determine a trend's strengths or weaknesses.

If Bitcoin’s price is above the 20-day EMA, it would indicate a solid bullish trend. However, as long as the coin wobbles below the threshold, it risks retracement to $55,019.

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