Bitcoin continues to demonstrate a «healthy upward trend» and could reach new historical highs in the coming weeks, according to analysts at CryptoQuant.
According to their latest research, the flagship cryptocurrency has the potential to rise to $150,000, as BTC is still far from overheating. This is indicated by a technical indicator predicting its local lows and highs.
The Network Value to Transaction Golden Cross (NVT-GC), which compares market capitalization to the value of transactions on the network over a given period of time, is currently in «neutral» territory.
Negative NVT-GC readings, especially below -1,6 on the scale, usually precede a price rally. Once the reading exceeds 2,2, the likelihood of a bearish reversal increases.
The last sustained signal was received in July, when NVT-GC reached -2,8. It then recovered to 0,3.
This does not indicate either extreme overvaluation or undervaluation, but rather a healthy upward trend. In the short term: since the indicator is not overvalued, Bitcoin «It hasn’t reached bubble level yet. It still has potential to grow,» concluded CryptoQuant analyst Pelin Ai.
NVT-GC has been performing impressively lately. All four previous long-term declines have resulted in BTC price gains, including the one in August 2024.