Bitcoin (BTC) is currently at significant bargain levels according to multiple under-the-radar on-chain metrics, according to analyst Will Clemente.
In a new interview with Altcoin Daily, Clemente says he sees a strong amount of institutional demand for Bitcoin on Coinbase, the US’ largest crypto exchange.
“I would say from that sense, Bitcoin is definitely in an area of value, below $20,000. When we look at order books, we see kind of a confluence across multiple order books. One of the ones that we look most closely at is Coinbase spot. The reasoning behind that is because that’s where a lot of these US-based institutions operate because Coinbase has done a lot of work on the compliance side and regulatory side and they’re a publicly traded company. So a lot of these United States based firms feel more comfortable operating on Coinbase versus an overseas exchange like Binance or KuCoin or any of these other exchanges…
When we look at Coinbase there is a very clear kind of pocket of bids from below $18,500 down to $11,000 to $12,000. And so what I’m saying here is there is a strong amount of demand for BTC sub $19,000. And we also see a confluence of that on multiple other venues, in particular looking at spot venues. So that’s another reflection that value area for BTC sub $20,000…
I would say it’s very undervalued instead of [at] fair value.”
The analyst says that a macro capitulatory event could push BTC from current prices into “extreme undervalued” territory, but he expects such price movement to be bought up very quickly in the event it occurs.
At time of writing, Bitcoin is trading at $19,104.
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Featured Image: Shutterstock/prodigital art/Konstantin Faraktinov
