Bitcoin and Ethereum are Extremely Oversold According to a Bloomberg analyst
According to Bloomberg Intelligence’s senior commodities analyst McGlone, Bitcoin and other cryptocurrencies trade at a considerable discount.
Bitcoin is still one of the most valuable digital assets in the cryptocurrency industry in terms of market value, even though it is now trading around 66.4% lower than its all-time high on November 10, 2017.
According to Forbes, McGlone’s views are based on an indicator-specific technical analysis. McGlone states that Bitcoin has achieved its lowest price relative to its 100-week moving average, characterising the currency as “an extraordinary discount inside an ongoing bull market.”
The expert from Bloomberg asserts that the Federal Reserve’s involvement should not be overlooked. Since last year, McGlone’s credo for risk assets has been “Don’t fight the Fed.”
“Bitcoin and cryptocurrencies played a significant role in the 2021 rush and, therefore, the 2022 flush, but I foresee Bitcoin and Ethereum coming out on top.”
“Bitcoin is well on its way to being global digital collateral in a world headed in that direction, and Ethereum is a main driver of the digital revolution, as proven by enabling the most commonly traded cryptocurrencies — dollar tokens,” Forbes contributor McGlone noted.
The market is Strong at $18,000
Budd White, co-founder of the cryptocurrency business Tacen, and other industry heavyweights have chimed in on the issue. According to White, Bitcoin is not only oversold but is also now in the accumulating period.
White observed for Forbes that Bitcoin’s Market Value to Realized Value, or MVRV, is approximately one, indicating that the asset’s market value has plummeted to its actual practical value.
This value is the result of massive liquidations in the sector, including the Terra collapse, the 3AC liquidation, and most recently, Elon Musk’s $1 billion sale of Tesla.
As a consequence of the rising figures, the markets seem to be pricing in even more aggressive monetary tightening, according to White. This may indicate that the cryptocurrency market is detaching from the stock market, but White does not rule out the possibility of Bitcoin seeing another leg down.
“I am not suggesting that Bitcoin is decoupling from the equity markets. Undoubtedly, another decline in Bitcoin’s price is a distinct possibility.”
“However, this relative strength suggests that most Bitcoin sales may be behind us.” And absent any external shock to markets, such as credit markets seeming to be on the brink of collapse, I believe investors still view Bitcoin as a good purchase at current prices,” White said.