Bitcoin NVT Signal

source: charts.woobull.com / @woonomic
On-chain data provider: Coin Metrics

About NVT Signal

NVT Signal (NVTS) is a derivative of NVT Ratio by Dimitry Kalichkin which provides more emphasis on predictive signaling ahead of price peaks.

Calculation

NVTS = Network Value / 90d MA of Daily Transaction Value.

This differs from Standard NVT Ratio which is simply the Network Value divided by Daily Transaction Value, and then interpolated using forward/backward moving averages to create a smooth line.

Adjusted NVTS compensates for upward drift in the signal. This is caused my an increasing amount of investor volume moving off-chain, especially on exchanges where their activity is unseen on the blockchain. Adjusted NVTS displays how many standard deviations NVTS is above or below its historical norm. The historical norm is the 2 year moving average of NVTS, similarly the standard deviation calculation uses a 2 year sampling.

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: Author : @woonomic