> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cryptoquant.com/llms.txt
> Use this file to discover all available pages before exploring further.

# NVT Golden Cross

> NVT Golden Cross (NVT GC) is a Bollinger-band-like signaling indicator based on NVT, defined as the following equation

## What is NVT Golden Cross?

NVT Golden Cross (NVT\_GC) is a [Bollinger-band](https://en.wikipedia.org/wiki/Bollinger_Bands)-like signaling indicator based on NVT, defined as the following equation.

$$
\text{NVT} = \frac{\text{Market Cap}}{\text{Transaction Volume}} \\
\text{NVT\_diff} = \text{NVT (10 days moving average)} - \text{NVT (30 days moving average)} \\
\text{NVT\_GC} = \frac{\text{NVT\_diff}}{\text{NVT\_diff (300 days moving standard deviation)}}
$$

## How to interpret NVT Golden Cross

NVT Golden Cross targets to generate short or long signals by comparing the short-term trend of NVT and the long-term trend of NVT.

This **leading indicator** predicts the appearances of local tops and bottoms, which helps traders to take their short or long positions.

### By value itself <a href="#interpretation" id="interpretation" />

**Predicting Local Tops and Bottoms**

* **Values over ‘2.2’** : **Short Signal**

  If the short-term trend is way greater than the long-term trend is, the network can be interpreted as overpriced and will soon revert to mean value, meaning **short signal**.
* **Values under ‘-1.6’** : **Long Signal**

  If the long-term trend is way greater than the short-term trend is, the network can be interpreted as under-priced and will soon revert to mean value, meaning **long signal**.

### By examining trend  <a href="#use-case" id="use-case" />

It shows **the comparative trend difference between long-term and short-term.**

* **Increasing trend** : Marketcap(Price) is **heating up** compared to transaction volume

* **Decreasing** **trend** : Marketcap(Price) is **cooling down** compared to transaction volume

<img src="https://mintcdn.com/cryptoquant/Hw2Gulyp0hXS0SGm/images/userguide/-MCvQBa12lvqtnkiFzlH.png?fit=max&auto=format&n=Hw2Gulyp0hXS0SGm&q=85&s=820d324d20e19f32d40db2fdb9f226b8" alt="" width="1812" height="974" data-path="images/userguide/-MCvQBa12lvqtnkiFzlH.png" />

## Link to Our Data

* [NVT Golden Cross in CryptoQuant Live Chart](https://cryptoquant.com/overview/full/201?window=day)

## Related API Endpoints

Query this metric directly from the CryptoQuant Data API:

* **BTC** — [NVT Golden Cross](/api-reference/btc-network-indicator/nvt-golden-cross)