Bitcoin Is Currently Undervalued: Fidelity Executive
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Data from CoinMarketCap shows that the benchmark cryptocurrency trades at neutral levels on the daily chart and -4% over the past seven days.
That said, Jurrien Timmer, the Director of Macro at Fidelity, believes that long-term BTC investors have a unique opportunity to increase their holdings at the current price. The Fidelity executive argues in a recent tweet that Bitcoin is cheap, backing his claims by juxtaposing Bitcoin’s worth with a value chart.
Timmer also made a case for Bitcoin’s adoption curve, arguing that the curve will likely continue to trend towards the upside, thereby increasing the value of the crypto asset. The Fidelity official explained:
“Bitcoin’s price-to-network ratio (my proxy for a valuation multiple) is back to 2014 levels. Meanwhile, its network continues to grow, roughly in line with a power regression curve. For me, the main nuance is the slope of the adoption curve. Whether we use the mobile-phone curve or internet curve as proxies, Bitcoin’s price is below its actual and projected network-growth curve.”
Key Bitcoin Levels to Watch — August 18
BTC is on track to record its fifth consecutive daily decline as $23K comes into focus again. This decline comes after a sharp rejection from the $25K critical top earlier this week and a rejuvenated dollar.
The daily stochastic indicator shows that BTC is fast-approaching oversold levels, which I believe could coincide with a decline to the upper-$22K band. The bearish bias seems even more reliable as we go into a weekend mode when the crypto market usually exhibits bearish tendencies.
Meanwhile, my resistance levels are at $24,000, $25,000, and $26,000, and my key support levels are at $23,000, $22,000, and $21,000.
Total Market Capitalization: $1.12 trillion
Bitcoin Market Capitalization: $446 billion
Bitcoin Dominance: 39.9%
Market Rank: #1
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