Analyst Suggests Bitcoin May Face Deeper Reset Ahead of Next Cycle

• Bitcoin’s NVT Golden Cross signals a reset after capitulation, not an impending top.

• Gold’s surge to new highs above $4,420 per ounce revives rotation talks, but evidence is inconclusive.

• Historical analysis reveals mixed outcomes in asset rotations, with macro factors driving Bitcoin’s trends more than direct flows from gold (data from CryptoQuant).

Discover why Bitcoin needs a deeper reset before the next cycle. On-chain data shows stabilization amid gold’s rally. Stay informed on crypto trends for smarter investing decisions.

What Does Bitcoin’s Deeper Reset Before the Next Cycle Mean?

Bitcoin’s deeper reset before the next cycle refers to a period of market correction and stabilization following intense volatility, where undervalued assets realign through capitulation and accumulation. According to on-chain indicators like the Network Value to Transactions (NVT) Golden Cross, Bitcoin is currently exiting a phase of undervaluation, transitioning toward balance. This process historically precedes sustainable uptrends by clearing excesses and attracting long-term holders.

How Is Gold’s Rally Impacting Bitcoin’s Reset Phase?

Gold has recently achieved new all-time highs surpassing $4,420 per ounce, prompting discussions about potential capital rotation into Bitcoin as digital gold. Analyst Darkfost examined this dynamic by comparing both assets against their 180-day moving averages, revealing that while Bitcoin may outperform when above its trend and gold below, the evidence for consistent rotation is limited. Historical cycles, as visualized in data from CryptoQuant, demonstrate mixed results: some periods saw Bitcoin gains post-gold peaks, but others showed no significant follow-through. Broader influences, such as liquidity and global risk sentiment, appear to dominate over simplistic rotation theories. Darkfost noted, “As gold has just set a new all-time high above $4,420 per ounce, I wouldn’t be surprised to see the capital rotation toward Bitcoin narrative back in force. This is one of the narratives we’ve heard a lot during this cycle, yet it isn’t really well grounded.” This scrutiny underscores that Bitcoin’s current reset prioritizes internal normalization over external asset flows.

Frequently Asked Questions

What On-Chain Metrics Indicate Bitcoin’s Need for a Deeper Reset?

The NVT Golden Cross is a primary metric signaling Bitcoin’s deeper reset, occurring after major capitulation where transaction values catch up to network valuation. This pattern, drawn from historical data, reflects a shift from short-term selling to long-term accumulation, typically avoiding cycle tops and fostering balanced conditions for future rallies.

Will Gold’s New Highs Trigger a Bitcoin Surge in the Current Cycle?

Gold’s new highs above $4,420 per ounce have sparked rotation speculation, but data shows no reliable pattern of direct capital inflow to Bitcoin. Analysts like Darkfost highlight that while timing seems appealing, macro liquidity and sentiment drive movements more reliably, suggesting Bitcoin’s path depends on its own reset dynamics.

Key Takeaways

• Post-Capitulation Stabilization: Bitcoin’s NVT Golden Cross points to a structural reset, historically leading to renewed upside after volatility clears out weak positions.
• Mixed Rotation Evidence: Gold’s rally revives narratives, yet comparative analysis of moving averages reveals inconsistent capital flows between the assets.
• Focus on Normalization: Investors should monitor on-chain data for signs of valuation repair, which could signal the onset of the next sustainable cycle.

Conclusion

As Bitcoin navigates its deeper reset before the next cycle, on-chain metrics like the NVT Golden Cross and gold’s rally scrutiny highlight a market prioritizing internal balance over speculative rotations. With historical precedents favoring consolidation before growth, this phase offers opportunities for informed positioning. Stay vigilant with evolving crypto trends to capitalize on the upcoming sustainable momentum in Bitcoin’s deeper reset and beyond.

Bitcoin appears to be transitioning out of a prolonged period of undervaluation, according to fresh on-chain data from sources like CryptoQuant, as several indicators suggest the market is moving toward a more balanced state rather than approaching a cycle peak. Recent charts tracking Bitcoin’s Network Value to Transactions (NVT) Golden Cross show a familiar historical pattern, typically following major capitulation events where weaker market participants exit and longer-term capital begins to accumulate. Analysts interpret this shift as a structural reset that often lays the groundwork for more sustainable trends, rather than a warning sign of an imminent top.

Historically, similar resets have occurred after periods of intense volatility, eventually preceding renewed upside rather than marking tops. Current readings imply Bitcoin is stabilizing after prior excesses, with valuation metrics slowly normalizing. This process is crucial for establishing a solid foundation ahead of the next market cycle, ensuring that growth is driven by genuine accumulation rather than fleeting hype.

At the same time, gold has surged to fresh all-time highs above $4,420 per ounce, reigniting speculation that capital could rotate from precious metals into Bitcoin. The idea has been widely discussed throughout the current cycle, often framed around Bitcoin reclaiming its role as “digital gold.” However, this narrative is increasingly being questioned. Analyst Darkfost argues that while the timing may appear compelling, there is limited evidence proving that capital directly migrates from gold into Bitcoin in a consistent or measurable way.

To explore this relationship, Darkfost analyzed historical price behavior using a comparative framework that tracks Bitcoin and gold against their respective 180-day moving averages. The model identifies positive signals when Bitcoin trades above its 180-day average while gold remains below its own trend, and negative signals when both assets fall under their long-term averages. While this approach helps highlight periods where Bitcoin may outperform gold, the results are far from conclusive.

Data compiled using historical market cycles shows that outcomes have been mixed. Some rotation periods coincided with strong Bitcoin performance, while others produced little follow-through. This inconsistency suggests that broader macro forces, liquidity conditions, and risk sentiment play a much larger role than simple asset rotation narratives. According to data visualizations shared from CryptoQuant, Bitcoin’s current positioning reflects normalization rather than speculative excess, even as gold continues to attract defensive capital.

Taken together, the signals suggest Bitcoin is undergoing a structural reset rather than flashing late-cycle warning signs. While gold’s rally has captured attention, the assumption that its gains will automatically fuel a Bitcoin surge remains unproven. Instead, analysts emphasize that sustainable Bitcoin trends tend to emerge after periods of consolidation and valuation repair – conditions that appear increasingly present in the current market environment.

The implications of this reset extend to investor strategies, where patience during consolidation can yield better entry points. Market participants are advised to track on-chain metrics closely, as they provide objective insights into network health beyond price action. For instance, rising accumulation by long-term holders often correlates with post-reset rallies, reinforcing the value of data-driven analysis in cryptocurrency investing.

Furthermore, the interplay between traditional assets like gold and digital ones like Bitcoin underscores the maturing crypto ecosystem. As institutional interest grows, understanding these dynamics becomes essential for navigating volatility. Expert opinions, such as those from Darkfost, remind us to ground expectations in empirical evidence rather than popular narratives.

In summary, Bitcoin’s deeper reset signals a healthy correction phase, poised to support the next cycle’s momentum. By focusing on verifiable indicators, investors can better anticipate shifts and make informed decisions in this evolving landscape.

Author: Alexander Zdravkov, Reporter at Coindoo. Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.