[Analysis] "Bitcoin, Undervalued Signal Detected…Now a 'Buying Opportunity'"

Doohyun Hwang

Summary

CryptoQuant announced that Bitcoin's NVT indicator has fallen below -1.6, entering an undervalued state.
An analysis suggests that Bitcoin's NVT indicator has a high likelihood of regressing to the mean value, making it a buying opportunity.
Along with positive news from the U.S., Bitcoin surged past $106,000 during the day, showing an upward trend.

An analysis has emerged suggesting that Bitcoin (BTC) has entered an undervalued state.

On the 24th, the on-chain data analysis platform CryptoQuant stated, "When the Bitcoin NVT (Network Value to Transaction) indicator falls below -1.6, it is considered undervalued," adding, "This signal has just occurred. There is a high likelihood of regression to the mean value, making now a buying opportunity."

The NVT indicator is the value obtained by dividing the market capitalization of the coin by the total amount of coins traded. Typically, a value above 2.2 is interpreted as overvalued, and below -1.6 as undervalued.

On this day, Bitcoin surged past $106,000 during the day, buoyed by positive news such as U.S. President Donald Trump's signing of a virtual asset executive order and the U.S. Securities and Exchange Commission's announcement of the repeal of SAB-121. It is currently trading at $103,800 on the Binance Tether (USDT) market, up 0.2% from the previous day after giving back some of its gains.

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