CandleFocus

Bitcoin Is Still Undervalued and That Presents a Buying Opportunity, Say Analysts

Author: Content Editor
Bitcoin is showing signs of being undervalued compared to its network fundamentals, potentially presenting buying opportunities for investors. The number of active Bitcoin addresses has increased by 39% over the past week, indicating higher demand and liquidity. Bitcoin's Network Value to Metcalfe Ratio (NVM) has also dropped to levels not seen since its all-time high, suggesting that the cryptocurrency could be trading below its intrinsic value. Analysts believe that the recent surge in active addresses often precedes or accompanies price increases. However, Bitcoin is currently struggling to maintain levels above key technical indicators and needs to break out of this consolidation by moving above the 200-day SMA with higher trading volume. Some analysts are reconsidering Bitcoin's traditional characterization as a purely risk-on asset and are seeing it as a potential hedge against traditional market downturns. Bitcoin ETFs have seen mixed results, with some experiencing net outflows while others have seen inflows. BTC's immediate price action will depend on upcoming macroeconomic data, such as the Federal Reserve's meeting minutes and the Consumer Price Index (CPI) inflation data.

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