Is Bitcoin (BTC/USD) undervalued below $20K?
Some would be wrong to think so Bitcoin (BTC/USD) may be approaching the end of the year at just $20,000. But as the clock ticks, the reality is increasingly confirmed. Despite that, many analysts expected Bitcoin to hit $100,000 by the end of the year. It wasn’t bad math, though, considering a high of $68 last November. So, what went wrong?
Of course, it has been a tough year for all markets – cryptocurrencies and shares alike. Issues ranging from economic tightening, recession risks and the Ukrainian war have been cited. Stocks are trading at significantly depressed levels, while crypto has shown a direct correlation. If it makes sense that the stock markets will come back, then there is certainly a genuine expectation of crypto recovery as well. The question is when?
Perhaps it would be premature to believe that recovery will happen soon as risks remain. However, popular analyst Will Clemente says markets are staring at significant bargains for Bitcoin at $20,000. Clemente relies on several on-chain metrics to make his case.
According to the analyst, there is huge institutional demand for Bitcoin below $20,000 on Coinbase. The analyst says regulatory compliance has been attractive to institutional holdings of Coinbase. He notes clear bids for Bitcoin from the $18,500 price down to the $11,000 level. The same confluence, he says, is observed in other arenas.
Technical Indicators Supporting BTC Attractiveness?
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Source – TradingView
Bitcoin’s daily chart turns heads for technical readers. The price formed multiple bottoms at $19,000, signaling potential bear exhaustion. An RSI reading of 50.33 suggests that buyers and sellers are currently squared off. It was in the midst of the high inflation numbers last week that forced a flash crash in BTC. However, the cryptocurrency price shows a limited upside.
Is Bitcoin Undervalued Below $20K?
A large accumulation of institutional investors suggests that they see value in BTC at the current price. Coupled with several bottoms of $19,000, the price may be understated. Potentially, Bitcoin can recover from current levels. Further declines could be minimal and long-term owners should find satisfaction in buying $20,000 or $19,000.
