Home Bitcoin News Bitcoin’s NVT Ratio Reaches Critical Level Amid Market Drop

Bitcoin’s NVT Ratio Reaches Critical Level Amid Market Drop

Bitcoin NVT Ratio

Bitcoin (BTC) has seen a sharp drop of 6.54% in the past 24 hours, with its price falling to $91,000—its lowest point of 2025 so far. As the broader crypto market faces turbulence, particularly due to escalating trade tensions in North America, many investors are left wondering what this means for Bitcoin’s future trajectory.

One key metric drawing attention is Bitcoin’s NVT Golden Cross, which has recently surged to a critical level, signaling that the BTC market may be overheated. Let’s take a closer look at what this means for Bitcoin and the broader crypto market.

NVT Golden Cross Reaches Critical Threshold

Bitcoin’s NVT (Network Value to Transactions) Golden Cross is a technical indicator that tracks the relationship between Bitcoin’s market value and transaction volume. When the NVT Golden Cross surpasses a certain level, it suggests that Bitcoin’s price may be detached from its underlying transaction activity, often pointing to an overheated market and the potential for a correction.

Recently, the NVT Golden Cross reached a value of 2, its highest level in recent days. According to data from CryptoQuant, this spike indicates that Bitcoin’s market could be entering bubble territory, with bears possibly gearing up to take control. Historically, such levels of NVT have preceded periods of downward pressure on the asset’s price.

This pattern has been confirmed over the past 48 hours, as Bitcoin’s price struggled to hold above key support levels. With the NVT Golden Cross at this critical threshold, it suggests that a downturn could be imminent unless buyers step in to defend the market.

What Other Indicators Are Saying

While the NVT Golden Cross might be signaling a potential downturn, other indicators are providing a more optimistic outlook. Despite recent bearish sentiment in North America, global investors remain largely positive about Bitcoin’s long-term prospects.

One significant factor is the behavior of Bitcoin whales—large holders of the cryptocurrency. The Exchange Whale Ratio has recently dropped to a 10-day low, which suggests that these whales are holding onto their assets rather than selling them. This reluctance to sell signals confidence in Bitcoin’s future price potential and may point to a market rebound in the near term.

Moreover, Bitcoin’s VDD Multiple, which measures the ratio between the value of transactions and the value of coins held, has stayed above 1, currently sitting at 1.05. This indicates that long-term holders are not panic selling, suggesting market stability and confidence from seasoned investors.

Short-Term Drop or Longer Correction?

The current drop in Bitcoin’s price appears to be driven primarily by short-term holders, as long-term investors remain bullish. While the price decline may be concerning in the short term, the fact that long-term holders and whales are not selling their Bitcoin suggests that the market could soon stabilize and rebound.

If the market follows this pattern, Bitcoin could reclaim its recent highs, aiming for a price target around $96,370. A further correction might see Bitcoin dip to around $92,103, but a significant drop beyond that seems unlikely unless market sentiment drastically shifts.

Looking Ahead

Despite recent price fluctuations and the critical signal from Bitcoin’s NVT Golden Cross, the overall market sentiment remains optimistic. Bitcoin whales and long-term holders continue to show confidence, which could support a potential rebound in the coming days.

While Bitcoin may face some short-term volatility, the absence of strong selling pressure from major investors suggests that the recent drop could be a temporary setback rather than the start of a prolonged bear market. With key support levels still intact, Bitcoin has a solid foundation for a recovery, potentially pushing the price back toward $96,000 or higher.

Investors should keep a close eye on the NVT Golden Cross and other key indicators in the coming days to assess the potential direction of Bitcoin’s price. While risks remain, the broader market dynamics point to a potential recovery as long as long-term holders maintain their bullish outlook.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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