Bitcoin's organic valuation is at an all-time high and it's a bright mid-term sign

The Bitcoin NVT Ratio is at an all-time high, which indicates that the blockchain network activity is supplementing the price.

At its core, Bitcoin is a blockchain network and a settlement layer.

The NVT Ratio evaluates the current valuation of BTC by gauging the price and the sum of capital transmitted through the Bitcoin blockchain.

"When Bitcoin`s NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network, this can happen when the network is in high growth and investors are valuing it as a high return investment, or alternatively when the price is in an unsustainable bubble."

There are three components that typically make a Bitcoin rally a sustainable and prolonged uptrend.

Second, the daily transaction volume on the Bitcoin blockchain network, along with other fundamentals such as hash rate, has to remain high.

In recent months, the NVT Ratio has continuously climbed, which indicates the user activity of Bitcoin is steadily rising with the price.

"While we wait for BTC post an all-time-high, both on the monthly chart of $14k and the 20k prior top. I'll point out that the organic valuation under NVT Price from underlying long term investors is already at an all-time-high. Price will follow."

In technical analysis, the term "Price discovery" is used to describe a situation where an asset's price reaches a new record-high.

For Bitcoin, which relies heavily on blockchain network fundamentals, the price discovery of the NVT Ratio is a highly optimistic sign.