The Bitcoin (BTC) Network Value to Transaction (NVT) golden cross suggests that the cryptocurrency’s recent surge past $93,000 might not mark the peak of this cycle. BeInCrypto observed this after analyzing the current state of the metric.

At press time, BTC trades at  $90,893. Here is why this slight drawdown may not last: instead, Bitcoin’s price could rally well above its all-time high.

Data Shows that Bitcoin Remains Undervalued

Bitcoin’s NVT golden cross is a metric that helps spot tops and buttons during a cycle. When the NVT golden cross surpasses 2.2 points (red region), it indicates a short-term trend of price overheating, potentially signaling a local top. 

Conversely, a drop below -1.6 points (green area) suggests the price is cooling excessively, pointing to a possible local bottom. According to CryptoQuant, the metric’s reading is -3.25 as of this writing, suggesting that Bitcoin’s price still has room to appreciate.

For instance, when the metric was -2.60 in January, BTC traded below $42,000. About two months later, the coin went on to hit $73,000. Therefore, considering historical data and the current position of the metric, it is likely for BTC to climb toward $100,000 before the year closes. 

This outlook also aligns with that of Crypto Kaleo, an analyst. According to Kaleo, Bitcoin’s potential rise to $100,000 could bring back retail investors and possibly push the price higher. 

“I think Bitcoin surprises everyone when it crosses $100K, sends straight past it and doesn’t look back. It’s been such a mental milestone for so long that it’ll bring retail FOMO back

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Author: Victor Olanrewaju