Bitcoin Drops Below $80K, On-Chain Data Suggests Possible Bottom

Bitcoin's price has continued to decline over the past 24 hours, with the cryptocurrency falling below the $80,000 mark. Market participants are now questioning whether the bottom is in sight for the world's largest cryptocurrency.

On-chain data suggests that Bitcoin may be nearing a bottom, but it could still take a further drop before it's actually in. The Bitcoin NVT Golden Cross, an on-chain indicator that compares the short-term trend of the NVT Ratio against its long-term one, has recently seen a sharp decline. The indicator is now inside the bottoming zone, which means the coin may be starting to become oversold.

The NVT Ratio, which measures the ratio between the market cap of Bitcoin and its transaction volume, has also witnessed a sharp decline recently. When the value of this metric is greater than 1, it means the value of the asset is high compared to its ability to transact coins. Such a trend can suggest BTC is overvalued. On the other hand, the indicator being under the zero mark can imply the cryptocurrency may be due for a rebound to the upside as its volume is high relative to its market cap.

In terms of on-chain support, the market intelligence platform IntoTheBlock has explained that the next relevant one is present under $72,000. As such, if BTC's decline continues, it's possible that the asset may find at least temporary relief around this mark.

Following the latest leg of the decline during the past day, Bitcoin has seen its price drop to the $81,600 mark. The price of the coin has been sliding down recently, with the cryptocurrency falling below the $80,000 mark. Market participants are now questioning whether the bottom is in sight for the world's largest cryptocurrency.