Bitcoin Approaches Balance as On-Chain Undervaluation Lessens

Market Transition: Bitcoin is moving out of a prolonged undervaluation phase, as indicated by on-chain data from CryptoQuant, suggesting a shift towards a more balanced market state characterized by increased accumulation behavior.

NVT Golden Cross Indicator: The NVT Golden Cross metric shows that Bitcoin's network value is beginning to align with transaction activity, historically indicating a transition from forced selling to more patient capital entering the market.

Equilibrium Phases: Historical data suggests that equilibrium conditions emerge after capitulation, leading to less volatile price action and gradual trend development, rather than abrupt reversals.

Current Market Context: Bitcoin is trading around $88,500, above historical undervaluation levels but still not in overheated conditions, indicating diminished downside risk while upside potential relies on sustained network usage and broader market conditions.