Bitcoin Likely Undervalued Below $63,000: Should Traders Wait For A Breakout?
Bitcoin is firm at spot rates though dipping from $60,000. Analysts are convinced the coin is undervalued but will recover above $63,000
Bitcoin is firm, per the developments in the daily chart. Admittedly, buyers have been resilient, but for the uptrend to continue, there needs to be a high volume push above the immediate local resistance. For now, conservative, risk-on traders can wait for a clean break in either direction before committing. If prices rise, closing above $63,000 and August 8 highs, Bitcoin might find the momentum to float above July highs.
As Bitcoin moves in a tight range, as is evident in the daily chart, its performance has been dull. This sideways movement means the coin is stable on the last week, but down nearly 5% in the previous day. Since there has been no clear breakout in either direction, participation is also low, at $32 billion amid the general indecision.
Traders are closely tracking the following Bitcoin news events:
- Considering the sideways movement and the dump of the past few trading weeks, Bitcoin has been impacted. Fresh data shows that the monthly compound growth rate is negative 5%. Aggressive traders can take advantage of this undervaluation to buy on dips.
- Another hint of possible undervaluation is shown by the short-term holder MVRV, which is now below 1. Whenever this metric shrinks below this level, prices tend to recover steadily afterward. Before engaging, traders can wait for a signal, ideally above $70,000.
Bitcoin Price Analysis
BTC/USD is within a bullish formation, following the uptick after the dump of August 5.
As it is, prices remain inside a buy zone, inside the $57,000 to $60,000 range, meaning buyers have a chance.
However, conservative traders have to stay on the sidelines until there is clarity.
Ideally, a close above $63,000 and August 8 may trigger demand. This, in turn, could set the foundation for Bitcoin to float back to $70,000.
However, if sellers are resilient and unrelenting, any drop below $56,500 and $50,000 cancels this bullish preview.
In that event, Bitcoin may crash to the $40,000 level.
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