Bitcoin (BTC) sets a new record, but this indicator shows it hasn’t overheated yet!

Jakarta, Pintu News – Bitcoin recently hit a new high, but recent analysis shows that the crypto asset is yet to show signs of overheating. The Network Value to Transactions (NVT) Golden Cross indicator provides an interesting perspective on current conditions.

Introduction of Golden Cross NVT

NVT Golden Cross is an indicator derived from the NVT ratio, which measures the market value of Bitcoin (BTC) compared to the volume of transactions. This indicator gives an idea of whether Bitcoin (BTC) is currently undervalued or overvalued.

When the indicator value is high, it indicates that the market value of Bitcoin (BTC) is high compared to its ability to make transactions, which could be an indication that Bitcoin (BTC) is overpriced. However, if the indicator value is low, it could indicate that there is still room for growth for the Bitcoin (BTC) market capitalization. This is because the market value is relatively low compared to the volume of transactions taking place.

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NVT Golden Cross Current Analysis

According to the latest analysis, Bitcoin (BTC)’s NVT Golden Cross is showing a rise as Bitcoin (BTC) price surges to new highs. Currently, the indicator is at a value of 1.5. The two important zones identified in the chart are the red zone above 2.2 which signifies the price peak, and the green zone below -1.6 which signifies the price bottom.

Although the price of Bitcoin (BTC) has reached $109,400, surpassing the previous record of $109,200, the NVT Golden Cross still shows that there are no significant signs of overheating. This suggests that although the price has been high, the value of transactions taking place still supports that price level.

Implications for Investors and Markets

With the NVT Golden Cross still showing room for growth, investors may see this as an opportunity to invest before a potential market top. It is important to monitor this indicator regularly as it can provide early signals before significant changes in price trends occur.

Additionally, an understanding of the NVT Golden Cross can help investors make more informed decisions about when to buy or sell Bitcoin (BTC). With the crypto market being so volatile, tools like this are invaluable for effective market navigation.

Conclusion

Although Bitcoin (BTC) has reached new highs, the NVT Golden Cross analysis shows that there is still potential for growth without significant risks of overheating. This provides an opportunity for investors to continue to observe the market and make informed investment decisions based on actual transaction data.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NewsBTC. Bitcoin All-Time High Metric: No Overheating Yet. Accessed on May 22, 2025
• Featured Image: Generated by AI