Leading crypto Bitcoin (BTC) is going through tough times from the harsh crypto winter. In particular, macro winds are blowing in the opposite direction, frustrating recovery moves. Bitcoin bulls also suffer from this situation. A crypto analyst says Bitcoin is currently undervalued according to on-chain metrics.
“There is strong demand for Bitcoin below $19,000”
According to crypto analyst Will Clemente, Bitcoin (BTC) is currently at significant bargaining levels according to multiple under-the-radar on-chain metrics. Clemente says he sees strong institutional demand for Bitcoin on Coinbase, the largest US crypto exchange. The analyst makes the following statement:
In that sense, I would say Bitcoin is definitely in the under $20,000 value area. When we look at order books, we see a kind of confluence between multiple order books. One of the points we take a close look at is the Coinbase spot.
Will Clemente says the rationale behind this is that most of these institutions are based in the US where they operate. Because he notes that Coinbase does a lot of work on the compliance and regulatory side. It also states that they are a publicly traded company. For this reason, he says, most of these United States-based firms are more comfortable operating on Coinbase compared to an offshore exchange like Binance or KuCoin or any of these other exchanges. The analyst continues his statement as follows:
Looking at Coinbase, it has a very clear offer pocket from under $18,500 to $11,000 to $12,000. And what I want to say here is that there is strong demand for BTC below $19,000. In addition, when we look at the spot venues, we see that this is followed in many other venues. This is another reflection valuing the area below $20,000 for BTC. Bitcoin is not at its fair value. At the moment, it is possible to say that it is of very low value.
“A macro capitulation is possible, but…”
The analyst says a macro capitulation event could push BTC into the ‘extremely undervalued’ territory from current prices. However, he expects it to be bought very quickly if such a price move occurs.
At the time of writing, Bitcoin was trading at $19,290, up 1.18% on a daily basis. Although the leading crypto started the new week with a rise, it cannot continue its upward moves. As you follow on Kriptokoin.com, under $20,000 was out of breath in the latest bear market run. After that, it started to decline and returned to the $19k levels. However, buyers did not allow it to sag below $19,000.
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