This Bitcoin price metric just hit ‘oversold’ for only the 7th time in 8 years

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The bitcoin (BTC) price that made BTC “looked too cheap” at $ 56,000 is now in a rare oversold area.

In a tweet dated December 6, Philip Swift, creator of the LookIntoBitcoin analytics platform, returned to the potential bullish signals from Bitcoins Advanced NVT Signal.

NVT Advanced lowers bitcoin rate
Advanced NVT calculates whether Bitcoin is overbought or oversold at a given price bracket using market cap and network size.

At the end of November, when the BTC / USD pair had already dropped to $ 56,000, Swift indicated that it was time for a rebound.

The account then continued to fall in line with the spot price thanks to a series of liquidations last Friday. However, one potential benefit is the return of oversold signals from NVT – which has only happened six times since 2015.

“There are a lot of concerns in the market at the moment, which gives me optimism,” he said. “There are many signs that we are nearing the bottom.”

“Advance NVT Signal studies price in relation to on-chain transactions. Previously, it sold only a few times, and each time it led to a strong rebound. ”

An illustrative graph of the improved Bitcoin NVT signal. Source: Philip Swift / Twitter
However, the strength of that bounce may have already dried up when Bitcoin reversed after roughly 6% overnight gain to $ 51,500 on Bitstamp.

From Trader to Bitcoin Buyer: Wait a Week to ‘Avoid Bounce’
At the time of the press release, the $ 51,000 was in the spotlight of commentators indicating that more trouble could soon be on its way.

RELATED: Bitcoin Could Drive People Crazy For Months With A Peak Price Of 53K BTC – Analyst

Trader and analyst Bentoshi advised Twitter followers: “Buy from below to mid 40s. Don’t dwell on them. ”

Meanwhile, as Cointelegraph reported on Monday, there are many reasons to decouple the spot price from Bitcoin’s fundamental strength.

Among them – an unprecedented high level of retail trade and a colossal deficit in sales. On the other hand, smaller scammers have increased the volume of their sites over the past week.

It appears that only the whales are defending their efforts, as evidenced by the exchange of flow data.

Source: CoinTelegraph

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