BTC falls below the network value line, historical data shows a 96% probability of profit one year later.

[Chain News] BTC's recent pullback has been quite severe—from the peak of $126,000 in October, it has fallen by 31.4% to the present. However, here comes the interesting part: this is the first time in two years that the coin price has dropped below its network value.

Economist Timothy Peterson is watching this signal, saying that historically every time this situation arises, Bitcoin tends to rebound. He is referring to the logic of Metcalfe's Law—coin prices should be linked to the number of active addresses and transaction volume. The more users there are, the more valuable the network becomes, and naturally, prices rise. Now, however, the price is disconnected from the network value, which means it is undervalued. This kind of dislocation usually occurs after the market has overheated.

Peterson posted on Tuesday emphasizing that although it does not represent that the bottom has been reached, it at least indicates that the leverage that should have exploded has exploded, and the “bubble” has also burst nearly. More importantly, the data: buying anytime the price is below the Metcalfe value has a 96% probability of making a profit after a year. This indicator has been quite accurate in the past.