Explanation

NVT-BT aims to help investors make informed decisions as to whether a digital assets network is overvalued. A low reading is considered "undervalued", and a high reading is "overvalued". The NVT can be looked at over different time frames, however, these should be in whole weeks due to bitcoin’s weekday bias (opens new window). The 5-week NVT is a useful short-term measure for traders, while longer-term measures such as the 12- or 52-week NVT are more suitable for investors.