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#Bitcoin approaches key support based on Metcalfe’s Law
The ratio between the market price of #Bitcoin and its theoretical value based on Metcalfe's Law has dropped to a historic support level, a zone that previously preceded upward reversals. Metcalfe’s Law, formulated by Ethernet inventor Robert Metcalfe, states that the value of a #network grows proportionally to the square of its users. In #crypto analysis, this principle is used to estimate Bitcoin’s “fair value” by comparing the number of active addresses with the actual market price. Right now, the metric suggests that $BTC may be undervalued relative to its #network activity. If the historical #pattern holds, this level could become a launchpad for the next upward move, as the network’s fundamentals remain stronger than the current market pricing. 💛
#crypto
BTC-3,7%
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