$BTC
$BTC Bitcoin undervaluation signal flashes as the golden NVT cross dips to –2.1
The golden NVT cross has just slipped to –2.1, deep into undervaluation territory - a level historically associated with strong short-term accumulation windows. Whenever this indicator drops below –1.6, it means that the market cap has fallen too much relative to the value of on-chain transactions... and prices tend to revert to the mean.
But context is important.
This is happening while BTC is trading near $85K after a sharp decline over several weeks, liquidity is thin, and leverage is still shrinking across major exchanges. In environments like this, undervaluation signals are more about gathering points - not aggressive leverage.
The chart illustrates the same pattern across cycles: each cluster of declines below –1.6 tends to mark periods when fear peaks, volatility increases, and the price prepares for a stronger move after weak hands are shaken out.
Currently, the structure resembles past panic-driven undervaluation areas - not market tops.
The signal says "cheap," but the conditions say "cautious."