Bitfinex Analysts Optimistic About Bitcoin’s Undervalued Status
Bitcoin (BTC) is currently undervalued and has the potential for a bullish recovery, according to analysts at Bitfinex crypto exchange. The analysts have identified two key metrics that indicate a positive outlook for the cryptocurrency, bringing renewed hope to traders and investors following recent volatility.
In a recent blog post, the analysts highlighted the MVRV ratio as a significant metric. This ratio compares Bitcoin’s market value to its realized value and currently suggests that the cryptocurrency is undervalued. The MVRV ratio provides valuable insights into traders’ buying and selling patterns, allowing for an assessment of market peaks and troughs.
Another indicator of Bitcoin’s bullish outlook is Open Interest (OI). The analysts noted that the Open Interest weighted funding presents a potential entry opportunity for investors. Higher OI indicates greater interest in a specific strike price, making it easier for investors to enter and exit trades.
Funding rates in the perpetual swaps market also reflect traders’ sentiments. Positive funding rates indicate that long-term traders dominate and are willing to fund short-term traders, while negative funding rates suggest the dominance of short-term traders compensating long-term traders.
Bitfinex analysts are not the only ones forecasting a bullish future for Bitcoin. Crypto analyst Ali Martinez, as reported by Crypto News Flash, has pointed to Bitcoin’s 30-day MVRV, implying the potential for a significant increase in value.
Although Bitcoin experienced a recent decline, dropping by 4.5% to trade below $57,000 for the first time since late February, signs of recovery are starting to show. At the time of writing, Bitcoin is trading at $59,083, representing a 1.53% increase in the past day. The market cap has also increased by 1.5% to $1.1 trillion, while trading volume has decreased by 27.7% to $28 billion.
Considering previous statements from Crypto News Flash, there is hope that Bitcoin’s recent bullish movement will continue. Short-term holders’ realized price is estimated to be around $63,000, and Bitcoin has historically demonstrated resilience with reversals around key realized price levels.
For more information on Bitcoin and its price movements, readers can check out the recommended articles, including a Buy Bitcoin Guide, Bitcoin Wallet Tutorial, and 24-hour Bitcoin Price Check.