Bitcoin [BTC] and the cryptocurrency market’s uptrend fizzled rather quickly this time after being rejected at $41,000. The turmoil in the market showed no signs of stopping as buyers exited each time the assets soared to the nearest resistance levels. However, all hope is not lost.
The latest charts by Crypto Quant depict that fear among Bitcoin investors is finally cooling off after a slew of corrections in May. To top that the funding rate is neutral across all cryptocurrency exchanges, the open interest was going up at the same time, there is an increase in leverage positions. The charts below signaled a possibility of the market-wide sentiment flipping bullish in the coming days.
Is it the best time to buy Bitcoin?
According to Pantera Capital’s CEO, Dan Morehead, it is. The latest downtrend is what makes this phase an opportunity for investors to buy more coins said the exec in the June investor letter which read,
“For new investors, it’s best to buy when the market is below trend. Now is one of those times. The market has been this “cheap” or cheaper relative to trend only 20.3% of the past eleven years.”
The letter also contained quotes from Bloomberg’s interview Morehead in which stated,
“Bitcoin’s still well below its ten-year compound annual growth trend. It’s not like we’re in the overpriced territory or it’s a bubble. Big corporations, many of whom are not called Tesla Motors or Elon Musk, are buying Bitcoin. Those trends are just starting and this is a multi-decade disruption. I think we have a long way to go here”
A similar sentiment was echoed by Glassnode’s stock-to-flow deflection chart, which depicted that Bitcoin is still the most undervalued with respect to the last 10 years of its history. The present streak resembled the middle of the 2017 bull market. soon after which the price of the crypto-asset went for an exponential run to the top.
That’s not it. The world’s largest cryptocurrency was also observed to be deviating from its 11-year uptrend line. The deviation approaches 36% negative which signified that its price is undervalued and also demonstrates more upside potential. The all-time high established during the previous bull run resulted in Bitcoin’s high above the said trendline.