Bitcoin recovers with a positive trend: The official on-chain index signals that market conditions have improved

The Bitcoin market has just recorded a noteworthy signal. On-chain analysis experts have confirmed that this leading cryptocurrency is no longer in oversold territory, opening new prospects for investors. With the current price at $90.81K, Bitcoin seems to be entering a stable phase after the recent sell-off.

Gradual Recovery Signal from On-Chain Data

Breaking out of the oversold zone is not a small event. It indicates that selling pressure is beginning to ease, allowing prices to stabilize and seek new support levels. According to analysts, this change is confirmed by the recovery of an important on-chain indicator, specifically the NVT Golden Cross.

This indicator is not just a number on a chart—it reflects the balance between market value and actual network transaction activity. When it shifts from -0.58 to 0.32, it suggests that a short-term bottom may have formed.

What is the NVT Golden Cross—and why is it important?

To better understand these signals, one must grasp the concept of the Network Value to Transactions (NVT) ratio. Essentially, it is a tool comparing Bitcoin’s market capitalization with its on-chain transaction value.

Value, what does it mean in this context? Value (refers to) here not just the price, but a reflection of the actual network usage relative to market valuation. When value is too high or too low, it indicates that Bitcoin may be over- or undervalued.

Basic guide to reading this indicator:

• Above 2.2: Signals Bitcoin is overvalued relative to network activity
• Below -1.6: Indicates Bitcoin is undervalued, often a sign of extreme conditions

What does oversold mean?

In trading, “oversold” (oversold) describes a condition where an asset has been sold off excessively, causing its price to fall below its intrinsic value. For Bitcoin, this state is a focal point of investor concern.

However, exiting oversold does not mean the price will rise immediately. Instead, it shows:

• Extreme selling pressure has been exhausted
• The market is seeking a new balance
• Investor sentiment is shifting

Why is this phase particularly important now?

The recovery we are witnessing is not a leap but a step-by-step process. This is a crucial distinction—Bitcoin’s recovery process appears to be happening at a steady pace, with accumulation phases and testing support levels.

For Bitcoin holders, this period offers hope that:

• Panic selling is subsiding
• Bitcoin’s value is being reassessed
• A new foundation is forming for future price movements

It’s important not to be overly optimistic. Gradual recovery could last weeks or months, with alternating waves of gains and corrections.

How to respond to this information?

On-chain analysis provides context but does not guarantee predictions. To leverage this signal:

Step 1 - Continuous monitoring: Watch whether the NVT Golden Cross continues its positive trend. Small fluctuations may occur, but the long-term trend is what matters.

Step 2 - Assess personal risk: A gradual recovery can still involve volatility. Ensure your position size aligns with your risk tolerance.

Step 3 - Seek confirmation from multiple sources: Combine NVT Golden Cross data with other indicators such as trading volume, macroeconomic trends, and investor sentiment.

Common mistakes to avoid

Many investors confuse “breaking out of oversold” with “market bottom confirmed.” In reality:

• An asset can exit oversold but still decline further
• “Oversold” describes market psychology; “bottom” is confirmed after prices rebound

Never make buy or sell decisions based solely on this signal. Always incorporate fundamental analysis, personal strategy, and other indicators.

How long might the recovery last?

A gradual Bitcoin recovery has no fixed timeframe. It can last from several weeks to months, depending on factors like:

• Global market sentiment
• Development of major blockchain projects
• Macroeconomic conditions
• Network transaction volume

Prepare for a longer journey rather than quick jumps.

Conclusion: Cautious optimism emerging

Bitcoin’s exit from oversold territory is a positive sign. With the NVT Golden Cross indicator recovering strongly, investors have more reasons to be optimistic, though caution remains essential. The Bitcoin recovery process appears to be grounded in fundamentals, and the upward journey may have already begun—step by step, slowly but surely.