Bitcoin’s network value to transactions (NVT) signal has entered the lower valuation zone, suggesting the market is currently undervalued relative to its network activity.
According to Crypto Tice, this signal is not about timing an immediate trade but providing context for potential market moves. Historically, these deep-green NVT zones have appeared when price lags behind network fundamentals, often preceding strong expansions rather than marking market tops.
Chart analysis of Bitcoin/USDT on a 5-day timeframe shows a repeating cycle of range expansions followed by corrective phases. Each major advance is triggered after price stabilizes at a swing low, forming a base that often leads to measured upward moves of around 47%–93%.
Source: X
Later cycles display smaller percentage gains, reflecting normal late-stage bull market dynamics, but the higher-low structure remains intact.
These horizontal support zones act as accumulation ranges, giving buyers room to step in after corrections, maintaining a bullish market framework.
Also Read: Bitcoin’s 4-Year Cycle Is Dead: How $88K Signals the $619K Supercycle
Bitcoin Whale Activity Slows, Sell Pressure Drops
According to analyst AndrewBTC, major Bitcoin deposits into the largest Bitcoin trading platform, Binance, also saw a major decline in the last month of the year.
Inflows declined from $7.88 billion to $3.86 billion. The decline in major Bitcoin deposits indicates a decline in the selling pressure exerted by whales.
The Binance Exchange Whale Ratio is going down and holding a lower level compared to its recent highs now that the Bitcoin price is at $87,000. That means that large traders, also known as whales, are making a reduced net contribution to exchange inflows compared to small traders.
Source: X
Volatility still happens every now and then due to inflows, such as 466 million USD from 100-10k BTC wallets, but it looks like there’s reduced sell pressure.
Market Structure Suggests Measured Expansion
Bitcoin price remains bullish. Despite strong bouts of selling, there are higher lows and a return to regions of demand where people continue to buy. The lack of strong sellers and regions of undervaluation defined by NVT Scans argues against a top and instead is indicative of a late-cycle correction.
In simple terms, Bitcoin is most probably in a mid-term trend reset. Over-optimism and leverage are being cleaned out to allow for another positive move upward.
Small amounts of inflow money may fluctuate in the short term, but overall, there is potential for movement upward since history repeats itself.
Also Read: Bitcoin Daily Candle Shows Indecision with $93,000 Target in Sight
