Crypto analyst and founder of LookIntoBitcoin analytical service Philip Swift discovered a signal that indicates a possible strong rebound in the price of bitcoin after falling to $ 42 thousand, writes RBC Crypto.
1/ A lot of fear in the market currently, which makes me bullish.
Lots of indicators suggest we are near a bottom.
Advanced NVT Signal looks at price relative to onchain transactions. It has only been this oversold a few times before, each time resulting in a strong bounce. pic.twitter.com/binLC6AgZX
— Philip Swift (@PositiveCrypto) December 7, 2021
The analyst used the Advanced NVT indicator, which determines the degree of overbought and oversold of an asset based on its market capitalization and on-net volume. Bitcoin is currently in oversold territory according to the Advanced NVT indicator, according to Swift.
The analyst explained that in the entire history of the first cryptocurrency, it was in this zone only six times. After each plunge into oversold conditions, the asset’s price bounced up sharply, Swift claims.
On December 4, for the first time since the end of September, the price of bitcoin dropped to $ 42 thousand.Then the cryptocurrency rate fell by more than 20% per day. On December 7, the asset is trading at $ 51,000, and its capitalization is $ 968 billion, according to CoinGecko.
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