Investors' on-chain activity hints at Bitcoin price cycle top above $166,000
April 17, 2021. Summarized by summa-bot.
Compression ratio: 21.7%. 1 min read.
The Bitcoin price cycle top would likely come in at price levels above $166,000, one key on-chain indicator suggests.
Current on-chain volume suggests investors are still strongly buying Bitcoin at current price levels. Furthermore, the current price is not even close to a short-term price top when comparing to historic network valuation multiples. BTC price bull run not overheated, investor activity showsWhile bear market bottoms often coincide with seller exhaustion, bull cycle tops happen to occur with buyer exhaustion.
Watching long-term investor activity during the different stages in a bull market proved to be a good indicator for BTC price support levels and overheated conditions in the past.
Therefore, NVT could also be called the valuation multiple of the network derived from transaction volume or could be thought of as the PE, or "price to earnings," ratio of Bitcoin. NVT premium says short-term top possible at $95K The market price rarely dipped below the NVT price during a bull market.