Bitcoin (BTC) Undervalued: Bullish Trends Indicate Potential Uptick Ahead

Bitcoin is exhibiting bullish on-chain metrics, with institutional inflows and reduced exchange reserves indicating potential price increases. Exchange outflows and stablecoin ratios suggest undervaluation, while funding rates provide insights into market sentiment. Currently trading at $83,783, Bitcoin’s outlook is positive due to rising trader confidence and institutional demand, positioning it for further gains.

A digital asset analyst highlights bullish on-chain metrics for Bitcoin (BTC) amidst market volatility. Significant institutional inflows and reduced exchange reserves suggest that Bitcoin is more valuable than in prior market cycles. The asset’s profit supply and anticipated growth trends also appear positive, indicating the possibility of new price targets for investors.

Following the recovery in the crypto market, Bitcoin bulls have intensified exchange withdrawals, thereby increasing trader confidence. Analyst Boris Vest notes that current exchange reserves have dipped to levels unseen since 2018, with more than 2.43 million BTC now held off exchanges. Additionally, older assets (those over seven days old) are being transferred to different custodians, reflecting a trend toward long-term holdings.

During the 2021 bull cycle, Bitcoin reserve figures reached 3.4 million, making the current decline indicative of an undervalued asset amid recent challenges. Vest suggests that this decrease in supply may correlate with an impending price surge, as whales increase their holdings and move significant amounts of BTC off exchanges.

Moreover, the stablecoin supply ratio (SSR) stands at 14.3, signifying an upcoming influx of capital ready for asset purchases. Although there may be a drop in price, the SSR still indicates a positive trajectory and has yet to reach the elevated levels observed during the 2021 bull cycle, reinforcing the notion that Bitcoin remains undervalued.

Notably, the funding rate has escalated considerably alongside a momentum-driven price increase, suggesting that long positions in Bitcoin have become overextended. With the current funding rate stabilising around 0.01–0.00, a negative shift could indicate rising short positions and potential upward price pressure for Bitcoin.

As of the latest figures, Bitcoin is trading at $83,783, reflecting a modest decline of 0.5% today, however, it has experienced over 9% gains on a weekly basis. Traders are optimistic about an upcoming price increase this quarter, largely due to a resurgence in institutional demand as reflected in recent analyses.

CryptoQuant suggests that with Bitcoin’s profit supply exceeding 70%, the price is stabilising. The next target for long-term holders is an 80% profit range, indicative of growing bullish momentum. Current flows into spot Bitcoin ETFs and related products further bolster the outlook for a price increase.