MAC_D
BTC NVT metric suggests overheated market cap, but common in recovery phaise
The NVT (Network Value to Transaction) golden cross metric is an indicator that uses the NVT metric to signal buy and sell points. NVT : BTC Market capitalization / BTC Onchain Transation Volume in USD The NVT is calculated by dividing the market capitalization of a coin by the total amount of BTC Onchain Transation Volume(USD). If the market capitalization is excessively high compared to the BTC transactions that occurred on-chain, it is interpreted that the current price is in the overvalued area (2.2), and if the market capitalization is excessively low compared to the BTC transactions that occurred on-chain, it is interpreted that the current price is in the undervalued area (-1.6). The current value of this indicator is 2.19, which suggests that the current BTC market capitalization is in the overvalued area. However, it has been a common occurrence in past recovery phaise for the BTC price to rise as the market capitalization increases, and in many cases, this has led to additional price increases and a shift to a bull market. Therefore, it is more rational to focus on the possibility of a shift to a bull market in the future, rather than interpreting the NVT golden cross indicator's overheating signal as an overvalued area and selling coins or holding short positions. also, it is important to focus on accumulation signals in the oversold area below -1.6 rather than overheating signals, and NVT golden cross indicator oversold areas have shown to be good buying opportunities in past recovery and bull markets, so it is necessary to monitor this indicator.