Bitcoin Price Curve with Zig-Zag Rate: Is BTC Possibly Undervalued?

The long-awaited Bitcoin “ Uptober ” is not really getting off the ground. Bitcoin (BTC) is currently trading at around $61,000 and is unable to break out of the relatively narrow price range of $60,000 to $64,000. But there is certainly no shortage of optimists in the crypto scene and there are voices that classify Bitcoin as undervalued.

Technical chart analyses are often used as an argument. For example, there is the Bitcoin Network Value (NVM), which is intended to measure the relationship between activity in the BTC network and the market price. The corresponding graphic shows that when the NVM rises, this is often a harbinger of an increase in the price.

The Bitcoin NVM has currently reached record levels, but BTC is lagging far behind its all-time high of almost $74,000 from March. Anyone who relies on this indicator can therefore assume that Bitcoin is undervalued.

BTC in the rollercoaster of stock market logic and global economy

Other analysts like Bob Loukas are closely monitoring Bitcoin cycles and conclude that BTC is almost exactly in the middle of a four-year cycle and in year three, starting in November/December, a breakout of the price curve upwards, up to $150,000, is to be expected. In general, the six-figure price target of $100,000 is stubbornly holding as a symbolic mark for Bitcoin – but the Bitcoin halving in April has not yet triggered the hoped-for effects.

Instead, economic and political developments in the US and other important Bitcoin markets seem to be increasingly influencing BTC pricing. The significant reduction in the US key interest rate in September, for example, was reflected just as directly in the Bitcoin price curve as the enormous tensions in the Middle East. Such dynamics are also fueling the debate again as to whether Bitcoin is suitable as “digital gold” and a store of value or whether it should be classified as a risky asset class.

Conclusion: Bitcoin forecasts tend towards optimism

Anyone who breaks out of the bubbles in which Bitcoin supporters always predict impressive rallies can also seriously consider negative scenarios. Will Donald Trump , as Bitcoin president-elect, actually win the race for the White House or will Kamala Harris, who is more skeptical about BTC, prevail?

Will the military conflagration in the Middle East spread and turn into a war over Israel? Can China stimulate the economy with its subsidy package? Will Japan find a way out of economic stagnation? Bitcoin has so far recovered from every weak phase and even several crashes in its history, proving to be undervalued in the medium and long term.

But no one can guarantee that such Bitcoin dynamics will repeat themselves. The Bitcoin ETFs in the USA, which are increasingly proving to be trend indicators, also do not indicate a clear direction for the BTC price development with alternating inflows and outflows in October.

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(Featured image by Oleksandr P via Pexels)

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