Summary:
Bitcoin prices fell to around $91,500 due to global trade war fears but quickly recovered.
Advanced NVT metric indicates a potential local bottom with a score of 38.13.
Historical patterns suggest price recovery typically follows a brief accumulation phase.
BTC is currently trading between $95,000-$100,000 with resistance at $102,000.
$267 million in net exchange outflows signals a bullish trend and reduced selling pressure.
As global tensions rise with new tariffs imposed by US President Donald Trump on Canada, Mexico, and China, Bitcoin (BTC) prices initially plummeted to around $91,500. However, the leading cryptocurrency quickly rebounded, although it faced strong resistance near the $102,000 mark, leading to speculation about the future of the current bull run.
Bitcoinâs Advanced NVT Signals Local Bottom
In a recent X post from renowned crypto analyst Burak Kesmeci, insights on the Bitcoin Advanced NVT (Network Value to Transaction) metric were shared. This on-chain metric helps evaluate BTCâs market valuation against its transaction volume, assisting traders in identifying overbought and oversold conditions in the Bitcoin market.
According to Kesmeci, the Bitcoin Advanced NVT has indicated local bottoms on four occasions in the past year:
- May 2, 2024: Score of 30.78
- August 5, 2024: Score of 35.82
- September 6, 2024: Score of 35.81
- October 10, 2024: Score of 38.21
Source: @burak_kesmeci on X
In each instance, BTC saw a price recovery, typically preceded by a brief accumulation phase. Recently, as Bitcoin dropped to $91,000, the Advanced NVT metric fell to 38.13, aligning with previous local bottoms, suggesting a potential price rally ahead.
While a short-term bounce appears likely, historical data indicates that Bitcoin may remain in a consolidation phase before launching a significant price rally. Following its rejection at $102,000, BTC is currently fluctuating within the $95,000-$100,000 range. For a price rally to occur, market bulls need to break through the $102,000 resistance, with additional hurdles at $105,000 and $106,000.
BTC Records $267 Million in Exchange Net Outflows
In related news, blockchain analytics firm IntoTheBlock reported that the Bitcoin market experienced $267 million in net exchange outflows, marking a three-week streak of outflows. This consistent outflow is a bullish signal, indicating that investors are transferring their assets from exchanges, thus reducing potential selling pressure. However, the recent outflow volume is significantly lower than levels recorded in November 2024, suggesting that there is still room for growth in investor confidence.
As of now, BTC is trading at $96,720, reflecting a 0.84% decline in the last 24 hours. The cryptocurrency faced a turbulent trading week, with an overall loss of 6.48%, yet it retains a monthly gain of 2.90%. With a market cap of $1.9 trillion, Bitcoin remains the largest cryptocurrency and the eighth-largest asset globally.
BTC trading at $96,710 on the 4-hour chart | Source: BTCUSDT chart on Tradingview.com
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