Leading crypto Bitcoin (BTC) is going through tough times from the harsh crypto winter. In particular, macro winds are blowing from the opposite side, frustrating recovery strides. Bitcoin bulls also suffer from this situation. A crypto analyst says that currently, Bitcoin is very undervalued compared to on-chain metrics.
“There is strong demand for Bitcoin below $19,000”
According to crypto analyst Will Clemente, Bitcoin (BTC) is currently at worthy bargaining levels relative 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 can say that Bitcoin is definitely in a price area below $20,000. When we look at the order books, we see a confluence of medicine in the middle of 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 many of these institutions are based in the US where they operate. He notes that Coinbase does a lot of work on the compliance and regulatory side. He also mentions that they are a publicly traded company. For this reason, he says that many of these companies based in the United States operate more comfortably on Coinbase than an offshore exchange such as Binance or KuCoin or any of these other exchanges. The analyst continues his explanation 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 spotlights, we see that this is followed in many other places. This is another reflection on the under $20,000 area for BTC. Bitcoin is not at its fair value. Currently, it is possible to pronounce that at very low cost.
“A macro capitulation is possible, but…”
The analyst says that a macro capitulation event could push BTC into the ‘overpriced’ territory from current prices. However, if such a price movement occurs, it expects to be bought very quickly.
At the time of writing, Bitcoin was trading at $19,290, up 1.18% on a daily basis. Although leading crypto started the new week with an upward trend, it cannot continue its upward breakthroughs. Koindeks.com As you follow, under $20,000 was out of breath in the latest bear market run. After that, it started to decline and returned to the $19,000 levels. However, buyers did not allow it to sag below $19,000.