What does Bitcoin NVT Golden Cross say about its price?

Bitcoin's (BTC) Network Value to Trade (NVT) golden cross suggests that the cryptocurrency's recent rise to $93,000 may not be the peak of this cycle. BeInCrypto observed this after analyzing the current state of the parameter.

At the time of publication, BTC is trading at $90,893. Here's why this slight decline won't last: instead, Bitcoin's price could rise above its all-time high.

The data shows that Bitcoin remains undervalued

The Golden Cross of Bitcoin NVT is a metric that helps identify peaks and troughs during a cycle. When the NVT golden cross crosses 2.2 points (red region), it indicates a short-term price warming trend, signaling an environmental high.

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

For example, in January when the scale was -2.60, BTC traded below $42,000. About two months later, the coin reached $73,000. Therefore, taking into account historical data and the current position of the indicator, BTC can climb to $ 100,000 before the end of the year.

This view also agrees with the Crypto Kaleo analyst. According to Kaleo, increasing bitcoin's potential to $100,000 could bring back retail investors and possibly boost its value.

“I think Bitcoin will surprise everyone when it crosses $100,000, going straight through it and never looking back. It's been such a mental phase for a long time, and when it happens, retail FOMO will be completely restored,” wrote an analyst at the mock on X.

Additionally, Glassnode data shows that Bitcoin is currently trading above the value of short-term holders (STH) and long-term holders (LTH). The guaranteed price represents the supply weighted average price that market participants paid for their coins. Support or resistance levels serve as an indicator on a chain.

Typically, the cryptocurrency faces resistance when the perceived value exceeds BTC. Hence, the price may find it challenging to climb. However, as seen above, the realized price of STH is below the price of BTC at 69,793, which indicates that the price may continue to rise.

BTC Price Prediction: Could $104,000 Be Next?

On the 3-day chart, Bitcoin has formed a bullish flag. A bullish flag is a bullish chart pattern characterized by two rallies separated by a short consolidation phase. A flagpole is formed during periods of high price growth when buyers outnumber sellers.

This is followed by a retracement phase, in which price action forms parallel uptrends and downtrends, forming a flag pattern. Considering the current outlook, the price of Bitcoin could rise to $104,228 as the buying pressure increases.

However, if Bitcoin's NVT Golden Cross reaches a very high price, that could mark a local high for BTC. In this case, the price of the coin may experience a significant correction.