base-pidgin

Bitcoin's price has surged past $98K, but declining network activity and valuation metrics suggest it may be overvalued.

Key concerns:

1. Metcalfe's Law: Bitcoin's fair value is between $48K and $95K, indicating a speculative premium.
2. Declining network activity: Daily active addresses have dropped, aligning with reduced on-chain engagement.
3. Market Value to Realized Value (MVRV) ratio: Historically, an MVRV above 2.4 has preceded corrections, indicating potential overvaluation.

Technical indicators suggest:

1. Bullish structure: But showing signs of exhaustion.
2. 50-day Moving Average (MA): Bitcoin is hovering near $98,710.
3. Momentum indicators: Suggest a slowdown.

Possible scenarios:

1. Correction: Bitcoin may pull back toward $95K if it fails to hold above the 50-day MA.
2. Consolidation: Bitcoin could target psychological resistance at $100K if bullish momentum persists.

Investors should monitor network growth and key support levels to gauge Bitcoin's next move.