Bitcoin 'not undervalued yet' says research as BTC price drifts nearer $16K

1 year ago

Bitcoin (BTC) whitethorn not beryllium bully worth capable for a macro terms bottom, according to investigation from CryptoQuant.

In a blog post connected Dec. 29, a contributor to the on-chain analytics level flagged 1 BTC terms indicator with further to fall.

Profitability indicator lacks cardinal cross

At astir 80% beneath all-time highs, BTC/USD is nearing the portion successful which it bottomed during erstwhile carnivore markets.

As CryptoQuant's MAC_D notes, determination is no shortage of instruments pointing to the 2022 carnivore marketplace bottommost already forming.

Despite this, however, the signs are not yet unanimous, and pointing to transactions successful nett and loss, helium warns that cheaper BTC prices whitethorn inactive enter.

CryptoQuant's unspent transaction outputs (UTXOs) successful nett and nonaccomplishment indicator presently shows astir 30% of transactions performed astatine a loss.

"When the UTXOs successful Profit and Loss indicators were crossed, the level was formed during the past 3 BTC Halvings," MAC_D explains.

Currently, however, this indicator does not amusement a cross, and does not amusement that the BTC is undervalued."

An accompanying illustration shows erstwhile crosses occurring lone seldom — successful June 2016 and May 2020. The second came successful the aftermath of the COVID-19 cross-market clang successful March of that year, and besides coincided with Bitcoin's latest artifact subsidy halving event.

"It volition supply a wide buying timing erstwhile the transverse is generated," MAC_D concluded.

"Therefore, the BTC is apt to autumn further, and spot hedging and down inclination trading are required."

Max symptom yet to come, accidental traders

CryptoQuant is acold from unsocial erstwhile it comes to concerns that BTC terms enactment whitethorn get worse earlier it gets better.

Among fashionable traders, assorted theories telephone for a overmuch deeper carnivore marketplace bottommost than existent spot prices, this perchance coming successful astatine $10,000 oregon lower.

As a imaginable metallic lining, Q1 2023 should spot the commencement of a recovery, with $22,000 adjacent acting arsenic a magnet for bulls aboriginal on.

BTC/USD is trading beneath $16,500 astatine the clip of writing, information from Cointelegraph Markets Pro and TradingView shows, having deed its lowest levels successful implicit a week earlier the commencement of the last Wall Street trading league of the year.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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