According to Lex Moskovski, Bitcoin is being underestimated
The graph provided by the popular Glassnode analysis platform show that the Bitcoin NVT (Network Value to Transactions) ratio has been at its lowest point throughout the BTC rally that started in October last year and continued in January, pushing the main cryptocurrency first above the $ 20,000 level, then above $ 40,000 and then into the $ 64,000 zone.
Bitcoin NVT can be calculated by dividing the value of the network (market capitalization) by the volume of dollars transferred on the BTC blockchain per day and shows whether Bitcoin is overbought or oversold.
According to the chart, BTC NVT is almost as low as it was in March last year, when “Black Thursday” occurred, pushing the stock and crypto markets deeply.
At that time, BTC lost 50 percent in one day and fell below the $ 4,000 level. Crude oil prices plunged below zero.
The current low level of Bitcoin NVT clearly demonstrates that the leading cryptocurrency is heavily oversold.
Image via Twitter
“#Bitcoin is extremely underestimated in relation to its economic performance.
NVT is at its lowest level in the entire bull run.
The only period for this execution in which it was shorter is the fall of March 2020. ”