If you haven't checked out my previous post on valuing BTC with the NVT ratio, check it out here. This is just some further thoughts on it.
NVT will have to drop below 20 to make the rate of return more enticing for investors.
Smart money should start entering at those levels. That will happen by a price decline or price consolidation while waiting for user growth to drop the ratio.
A 20 NVT would give bitcoin a MC of $80B ($4B daily transaction value) or $4700 per. If we do see a breakout on the downside, $5k (or a 20 NVT valuation) is the buy zone for me at this point.
