Bitcoin recently hit a new all-time high of $111,970, only to dip slightly afterward. But don’t worry, at least one analyst thinks the climb isn’t over yet.
The Advanced NVT Metric: A Bullish Signal?
A key indicator called the Advanced Network Value to Transactions (NVT) suggests Bitcoin’s price could keep rising. NVT compares Bitcoin’s market cap to its daily transaction volume, helping gauge whether it’s over or undervalued. High NVT values usually mean lots of speculation, and staying above certain levels often predicts bull markets.
Analyst Burak Kesmeci points out that Bitcoin’s NVT recently went above the +2 standard deviation mark – a historically bullish sign. Past instances of this have led to extended price increases. Even though the NVT is dipping slightly now, as long as it stays above +2 SD, Kesmeci believes Bitcoin’s upward trend will continue.
The Bigger Picture: Macro Factors and Market Sentiment
While Bitcoin’s recent performance is positive, with price increases of 4.02% (past 7 days) and 15.37% (past 30 days), macroeconomic factors, particularly US trade policy, could still cause trouble.
Network activity is showing signs of strength. Transaction fees are up 51.03%, indicating increased activity. Interestingly, despite the recent high, Bitcoin flowing into exchanges is relatively low (“mild,” according to Sentora), suggesting investors are holding onto their Bitcoin rather than selling.
Current Market Stats
- Bitcoin Price:
Around $107,835
- Daily Trading Volume: $45.94 billion (down 31.58%)
- Market Cap: $2.13 trillion (still the biggest cryptocurrency and a top 5 global asset)
In short, while there’s always risk involved, the combination of positive on-chain data and relatively strong market sentiment suggests Bitcoin’s bullish run might not be over just yet. However, keep an eye on those macroeconomic factors!
