Bitcoin Flashes Undervaluation Signal: NVT Golden Cross Hits Oversold
Bitcoin has lost more than 35% of its value since early October, dropping sharply from its $126,000 all-time high and sending the market into full panic mode. Sentiment has deteriorated quickly, with liquidations, forced selling, and collapsing confidence pushing price action into deeply oversold territory. Most analysts now argue that Bitcoin has officially entered a bear market, pointing to structural breakdowns and the violent rejection from cycle highs. However, a smaller but vocal group of market participants still believes the cycle is not over, claiming that the recent crash reflects capitulation—not long-term exhaustion. Supporting this view, key on-chain data from analyst Darkfost highlights a critical signal: the BTC NVT Golden Cross. This indicator evaluates Bitcoin’s valuation relative to its transactional and on-chain activity. Darkfost notes that when the NVT Golden Cross drops below –1.6, Bitcoin historically becomes undervalued, often preceding sharp mean-reversion r...