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

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

Advanced NVT was already hinting that Bitcoin was “seriously cheap” but has now printed a rare buy flag.

A Bitcoin (BTC) price metric, which made BTC “look seriously cheap” at $56,000, is now in rare oversold territory.

In a tweet on Dec. 6, Philip Swift, creator of analytics platform LookIntoBitcoin, returned to potentially bullish signals coming from Bitcoin’s Advanced NVT Signal.

Advanced NVT deflates in Bitcoin price rout

Advanced NVT calculates whether Bitcoin is overbought or oversold at a certain price point, using market capitalization and network volume.

In late November, when BTC/USD had already fallen to $56,000, Swift suggested that a bounce was due.

The metric subsequently continued to fall in line with spot price thanks to last Friday’s liquidation cascade. A possible plus, however, lies in the return of “oversold” cues from NVT — something which has only occurred six times since 2015.

“A lot of fear in the market currently, which makes me bullish. Lots of indicators suggest we are near a bottom,” he said.

As Cointelegraph reported Monday, meanwhile, there are plenty of reasons to separate spot price action from underlying strength in Bitcoin.

Among them is the all-time high hash rate, along with a broad lack of selling. Smaller hodlers, by contrast, have been adding to their positions throughout the past week.

Only whales appear to be hedging their bets, as evidenced by exchange flow data.

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