Bitcoin Analysis: Week 17 - (Part 6 out of 7) NVT Golden-Cros | House Of Chimera

Bitcoin Analysis: Week 17 - (Part 6 out of 7)

NVT Golden-Cross
This is a modified index of the NVT that provides local tops/bottoms. The NVT (Network Value to Transactions ratio) is similar to the PE ratio used in equity markets. The golden cross NVT indicator shows that if the value is above 2.2, the down risk goes up, and therefore the risk of holding Bitcoin goes up. If the indicator goes below -1.6 it shows huge upside potential.

The current NVT golden cross value is around -2.37, therefore indicating that Bitcoin is currently undervalued based on its NVT ratio. That indicates that the network valuation is lower than the value being transmitted on its payment network, therefore indicating that the network valuation is undervalued.