Bitcoin signals a potential bottom as market indicators turn bullish

According to a recent analysis on CryptoQuant, Bitcoin (BTC) is showing signs of hitting a “local bottom” in the recent early August selloff. An insight published on the on-chain analysis platform highlighted bullish signals from the value of the network to the NVT-GC tool, suggesting room for growth.

Despite recent warnings of a potential breakout in BTC/USD, the Bollinger Bands-like NVT-GC tool points to a possible rebound. This metric compares Bitcoin’s market cap to transaction value over time, identifying local market peaks and troughs.

CryptoQuant contributor Burakkesmeci explained that if NVT-GC rises above 2.2 points, it signals an overheated price, while a drop below -1.6 points suggests excessive cooling and a local minimum. The instrument is currently pointing to a local low, similar to the January 18 and July 12 signals that preceded price increases of 78% and 23%, respectively.

BTC is currently trading at $58,681, down 3.8% in the last 24 hours after missing the $60,000 level. However, Bitcoin has gained 7.58% in the last 7 days after a strong recovery from the lows of $49,500.