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.
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