- Bitcoin’s network to value transactions ratio (NVT) has reached an all-time high
- $14,000 represents a key resistance that Bitcoin also tried to break last year
- Analysts said after $14,000 there’s very little resistance all the way to $20,000
If Bitcoin’s network value to transactions ratio (NVT) is to be taken to account, it appears the benchmark cryptocurrency has already achieved a new all-time high
Bitcoin has set a new record in terms of its network value to transactions ratio (NVT), which looks at the entire value of the Bitcoin network versus the value of transactions facilitated through it. A high NVT means the value of the network is higher than the value that is transmitted through it. This often happens when the network is experiencing high growth and when investors think they will have high returns when they put money into it.
On Tuesday, the organic valuation of Bitcoin under NVT price reached an all-time high.
Bitcoin closed Wednesday at $13,281 after closing at $13,780 the previous day. It reached as high as $13,865, which matched its 2019 high.
Bitcoin appears to be trying to break $14,000, a resistance that the cryptocurrency tried to break last year but failed to deliver. At the moment, the benchmark cryptocurrency appears to be sustained at $13,200, the immediate support after the ascent to $13,000.
The $14,000 mark represents a key resistance level in Bitcoin’s monthly and weekly charts. It closed 2017 at that level and in 2019, it tried but failed to break it.
On-chain market analyst Willy Woo said in markets where all-time highs are breached, there’s no prior history to go back on. “So price discovery swings wildly upward exploring different levels as there’s no history to say that it’s not valid,” Woo said on Twitter.
Analysts have observed that there’s currently a lot of selling pressure around $14,000 but very little resistance if it is breached. If $14,000 does get breached, it could open a path back to $20,000, Cointelegraph reported.
Raoul Pal, a macro trader and CEO of Real Vision, believes a new all-time high can be expected early next year.
Bitcoin is so far up 88% since the year started and up 186% since the March 2020 low.