🚨 Bitcoin is currently above 100K, reaching $105,800. However, the most important question that many investors and traders have is whether Bitcoin is approaching its peak ‼️‼️ Therefore, I brought you a simple and easy indicator that allows you to understand Bitcoin's price and whether the price is fair or not? The indicator is NVT, which is used to assess whether the #Bitcoin currency is overvalued or undervalued, in a manner similar to the price-to-earnings (P/E) ratio in stocks. But instead of earnings, this indicator relies on the transaction volume on the network. The formula: NVT = market capitalization / average transaction volume on the network over 90 days. What does the indicator tell us currently? 🤔 The indicator has risen above the red zone (i.e., the market is overvalued). The price of Bitcoin exceeds $100,000. Historically, very high NVT levels often precede corrections or a slowdown in price performance. Red color = market is overvalued. Green color = market is undervalued. Important note: The indicator does not take into account the activity of the Bitcoin Lightning network or trading on centralized exchanges, which may affect the accuracy of the results. Conclusion: According to the NVT indicator alone, the market does not seem "cheap" currently. This does not necessarily mean that a crash is imminent, but it is an indicator that calls for caution and perhaps rebalancing the portfolio. ✅ Combining various analytical schools with indicators helps you reduce the margin of error in your analysis. ✅ The alignment of indicators with the technical outlook often gives you excellent entry and exit points. #CryptoAnalysis #NewsTrade #BTC☀ #Binance
