Analysis firm Glassnode notes that Bitcoin is significantly undervalued; the turbulent market conditions that Bitcoin has experienced in the past few days and weeks have clouded the clarity that many analysts and investors previously had regarding the strength of the solid upward trend in 2020. Although BTC has recovered from its recent lows, it is still unclear whether the damage caused by the recent downtrend is sufficient to weaken the bullish market structure created by the recent rally.
Unfortunately for the bears, Bitcoin’s data on the chain seem to paint a bullish picture as several different factors suggest that BTC is still undervalued and a price recovery is imminent.
Bitcoin’s technical and fundamental strength indicates an impending recovery
The past few days have been tough for Bitcoin as the cryptocurrency dropped to a low of $ 8,400 before finding some support that allowed it to rise to $ 8,850. Glassnode, a blockchain analytics company for, spoke about this in a recent blog post, saying:
“Although the price has continued to fall, the decline in active units has slowed in the past week, signaling a possible recovery in economic activity in the chain and giving hope of a recovery in the coming weeks.”