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The Bitcoin (BTC) network’s NVT golden cross pattern suggests that the cryptocurrency’s recent price surge beyond $93,000 may not be the peak of the current cycle. TinTucBitcoin realized this after analyzing the current state of this index.
At the moment, BTC is trading at $90,893. Here’s why this relief may not last: on the contrary, Bitcoin price could skyrocket past its all-time high.
Data Shows That Bitcoin Is Still Undervalued
Bitcoin’s NVT golden cross pattern is an indicator that helps identify tops and bottoms in a cycle. When the NVT golden cross crosses 2.2 points (red zone), it indicates the short-term price trend is overheating, possibly signaling a local top.
Conversely, a drop below -1.6 points (green zone) shows that the price is cooling excessively, indicating a possible local bottom. According to CryptoQuant, the index is at -3.25 at the time of writing, suggesting that Bitcoin price still has room to grow.
For example, when the index was -2.60 in January, BTC was trading below $42,000. About two months later, the currency reached $73,000. Therefore, based on historical data and the index’s current position, it is likely that BTC will climb to $100,000 before the year ends.
This view is also consistent with that of analyst Crypto Kaleo. According to Kaleo, the possibility of Bitcoin rising to $100,000 could attract the return of retail investors and push prices higher.
“I think Bitcoin will surprise everyone when it passes 100K, continue to rush further and not look back. This has been a psychological milestone for too long and when it happens, it will bring retail FOMO back into full swing,” the anonymous analyst wrote on X.
Furthermore, data from Glassnode shows that Bitcoin is currently trading above the strike price of both short-term holders (STH) and long-term holders (LTH). The strike price represents the supply-weighted average price that market participants have paid for their coins. It serves as an on-chain indicator of potential support or resistance levels.
Often, when the strike price is above BTC, the cryptocurrency faces resistance. As a result, the price may have difficulty climbing. However, as seen above, the strike price of STH is below the BTC value at 69,793, suggesting the price may continue to rise.
BTC Price Prediction: Could $104,000 Be The Next Target?
On the 3-day chart, Bitcoin has formed a bullish flag pattern. A bull flag is a bullish chart pattern characterized by two increases separated by a short-term consolidation period. Flagpoles form during sudden price increases when buyers overwhelm sellers.
A correction phase then follows, in which the price movement creates parallel upper and lower resistance levels, forming the shape of a flag. Considering the current outlook, Bitcoin price could rise to $104,228 as long as buying pressure increases.
However, if Bitcoin’s NVT golden cross reaches an extremely high level, that could mark a local top for BTC. In that case, the currency price could face a significant correction.
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