Crypto analyst BorisVest identifies that Bitcoin (BTC) may be undervalued according to on-chain metrics, including reduced exchange reserves and a stable Bitcoin Stablecoin Supply Ratio (SSR). This suggests a bullish sentiment remains strong. Additionally, trends in USDT dominance and the RSI point to potential price recovery, with Bitcoin trading at $85,550.
Recent insights shared by CryptoQuant indicate that Bitcoin (BTC) may still be undervalued based on certain on-chain metrics. Analyst BorisVest asserts that these metrics suggest a persistent bullish sentiment surrounding Bitcoin, implying potential for price growth in the near future.
The first key metric highlighted is the decline in Bitcoin’s exchange reserves, with current levels around 2.43 million BTC compared to 3.40 million BTC during the 2021 bull run. This depletion suggests Bitcoin is being withdrawn from exchanges and held for the long term, creating a tighter supply that could potentially drive prices higher.
In addition, the current Bitcoin Stablecoin Supply Ratio (SSR) stands at 14.3. This figure implies that investor purchasing power remains sufficient to cushion against drastic price drops, indicating a supportive environment for Bitcoin. BorisVest notes that the SSR, which has not yet reached 2021 levels, hints at Bitcoin’s potential undervaluation.
Furthermore, analyst Titan of Crypto observed a developing bearish divergence in USDT dominance, suggesting a shift in investor sentiment towards risk-on assets like Bitcoin. This trend typically indicates enhanced market sentiment, paving the way for a bullish phase in cryptocurrency.
Concurrently, the weekly Relative Strength Index (RSI) for Bitcoin has recently broken its downtrend, adding to hopes of a price recovery. Some analysts anticipate Bitcoin prices could exceed $100,000 in upcoming rallies, bolstered by positive exchange net flow data, contributing to the current market pulse. As of now, Bitcoin is trading at $85,550, reflecting a 0.5% rise over the last 24 hours.
