Bitcoin Sets New ATH, But This Metric Says No Overheating Yet
Summary
The Bitcoin Network Value to Transactions (NVT) Golden Cross suggests that Bitcoin may not be overheated despite reaching a new all-time high (ATH) of $109,400. The NVT Ratio, which compares Bitcoin's market cap to its transaction volume, indicates whether the asset is undervalued or overvalued. A high NVT Ratio signals potential overpricing, while a low ratio suggests growth potential. The NVT Golden Cross, derived from two moving averages of the NVT Ratio, currently sits at 1.5, indicating it has not yet entered the overbought zone (above 2.2). This suggests there may still be room for Bitcoin's price to rise further.
