RATE Group | Bitcoin Is Now Undervalued, Suggests This Price Metric
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Bitcoin Is Now Undervalued, Suggests This Price Metric

17 Mar Bitcoin Is Now Undervalued, Suggests This Price Metric

Posted at 13:57h in Cryptocurrency News by

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  • Bitcoin’s MVRV Z-score suggests the cryptocurrency is underpriced and could be trading near a major bottom.
  • Short-term technical charts indicate scope for a test of price resistance near $5,900.
  • A violation of an ascending trendline support on the four-hour chart would expose the recent low below $4,000.

A key metric suggests bitcoin (BTC) is now trading at a relatively discounted price, having dropped by 60 percent in the last three weeks.

Bitcoin’s market value to realized value (MVRV) Z-score fell below zero on Friday and stood at -0.18 as of Monday, according to crypto analytics firm Glassnode. The metric is used to to identify periods where the cryptocurrency is under- or overvalued

glassnode-studio_bitcoin-mvrv-z-score-1

The Z-score has turned negative for the first time in 12 months, suggesting the cryptocurrency is now undervalued.

Bitcoin topped out at $10,500 in mid-February and fell to a 12-month low of $3,867 on March 13, according to CoinDesk’s Bitcoin Price Index.

The cryptocurrency suffered a…

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