Bitcoin On-Chain Metrics Indicate Potential Undervaluation According to Analyst
Bitcoin Valuation Insights
CryptoQuant analyst BorisVest indicates Bitcoin (BTC) may be undervalued based on on-chain metrics:
- Bitcoin exchange reserves are at 2.43 million BTC, down from 3.40 million BTC during the 2021 bull run.
- A decrease in available BTC suggests long-term holding, potentially supporting price increases as supply tightens.
- The Bitcoin Stablecoin Supply Ratio (SSR) is currently 14.3, indicating sufficient purchasing power to prevent significant price declines.
- The SSR has not reached its 2021 level of around 34, suggesting potential undervaluation for BTC.
USDT Dominance and Market Sentiment
Analyst Titan of Crypto observed a possible bearish divergence in USDT dominance, signaling:
- Investors may be rotating out of stablecoins into risk-on assets like BTC and altcoins.
- This shift could indicate improving market sentiment and a potential bullish phase for crypto.
Additionally, the Bitcoin weekly Relative Strength Index (RSI) has broken its downtrend, raising expectations for a price recovery, with some analysts targeting prices above $100,000. Current trading price for BTC is $85,550, reflecting a 0.5% increase in the last 24 hours.
