Is Bitcoin the Best Short-Term Recovery Option?

Bitcoin is the largest cryptocurrency on the market and its value has risen sharply in recent weeks. Traders' confidence in Bitcoin rebounded when it traded above $ 40,000 on July 28, 29, and 30. But before investors could take advantage of this period, the price of Kingcoin decided to go crazy again. According to the press release, BTC has returned to the level of $ 38,500.

The Bitcoin daily chart saw green candles over the past week, but the candles that were written were red at the time of writing. In fact, in the last 24 hours alone, the value of Bitcoin has fallen by over 3.1%. Let's take a look at some key metrics to better define the impact of the current Bitcoin crisis.

Know the market value and market value online

RVT and NVT ratios are similar in terms of cost-benefit ratio. They compare the costs circulating in the network to the costs involved. When these examples are used simultaneously, they provide a reliable operating signal. High or high ratios indicate a decrease in relative demand and are usually represented by a bearish fractal.

In the cattle market, these two examples are usually traded between 5 and 18. However, they end up breaking the special uptrend near the end of the break. The recent rise to $ 40,000 indicates that this is a short-term "weak market", according to readings from NVT and RVT. The obvious uptrend seen on the RVT chart is a major cause for disappointment. So far, NVT has fallen to 16th on July 28, but it was still 33rd at the time of writing. In fact, the curve appears to be moving north, which is also a common problem. It should be noted that in the previous bull market, NVT and RVT spent more time on losses. So, for Bitcoin prices to rise, these examples need to take a step back.

Relative needs must now be increased in value to justify the change. In fact, the number of Bitcoin associations rebounded last week. The same figure increased by 30% from 250,000 to 325. As can be seen in the attached graph, the above activity was seen earlier in July 2020, when the price of Bitcoin was d. 'approximately US $ 11,300.

At this point, the value of Bitcoin has accumulated for almost a month, reaching $ 18,500. If the trend is followed by this period, gold prices will return to normal at the end of August. At the same time, demand is expected to increase.

Also, in the short term, it is important for the BTC weekly candlestick to close above $ 39,000 in order to keep prices higher.