Bitcoin is considered historically undervalued according to the Glassnode Network Value to Transactions Signal indicator, which is now significantly lower than in January this year. The most recent spike in value settlement took place back in May.
The presented indicator is a modification of the popular NVT metric, which was initially calculated by dividing the market cap by transactional volume in USD. The NVT Signal indicator uses the 90-day moving average of the transactional volume in USD.
By implementing the moving average, the indicator can be used more as a directional tool by removing unnecessary noise and random volume spikes that appear due to be technical mistakes or other problems.
