• Bitcoin [BTC]’s price settled around the $26,000 mark after a recent correction.
• TrueUSD’s market capitalization has been on the rise, possibly indicating an exit from its current bearish trend.
• Metrics such as NVT Signal also pointed at a possible market bottom.
Bitcoin Could Exit Bear Market Soon
TrueUSD’s market capitalization has been on the rise recently, which could indicate an imminent exit from Bitcoin’s bearish price trend. Metrics such as Bitcoin’s NVT Signal also reached a one-month low, suggesting that we may be approaching a market bottom.
Historical Correlation Between TrueUSD and BTC
Crypto influencer Tedtalksmacro noted that there is a historical correlation between TrueUSD and Bitcoin. Whenever TUSD’s market cap increases, it is followed by hikes in BTC’s price. This phenomenon happened earlier this year in January, March, and July, giving hope for a bullish price action this time around.
NVT Signal Points to Possible Market Bottom
Glassnode’s data revealed that Bitcoin’s NVT Signal just reached a 1-month low of 1,292.206 – indicating that investors are pricing Bitcoin at a discount and suggesting that we might be approaching a market bottom. As whales have already started accumulating coins in anticipation of future gains, this could be seen as further evidence of an impending reversal in the coin’s price trend.
Market Participants Remain Cautious
Despite these positive signals, several investors remain wary of the current volatile conditions in the crypto markets and are hesitant to make any moves until they can be sure of where the prices will go next. However, with various metrics pointing towards an upcoming bull run – such as low NVT signal – now could potentially be seen as an opportune time to accumulate coins for future gains.
Conclusion
Although it remains unclear whether or not Bitcoin will soon exit its bearish market trend – given historical correlations between TUSD and BTC and various other metrics pointing towards a potential reversal – it would certainly behoove investors to monitor closely how these developments unfold over the coming weeks before making any decisions about their portfolios.