one would be wrong to think that Bitcoin (BTC/USD) may only hit $20,000 at the end of the year. However, as the clock ticks, the reality is becoming increasingly confirmed. Despite this, many analysts expected bitcoin to hit $100,000 by the end of the year. However, given the high of $68 in November last year, it wasn’t bad math. so what’s wrong?
Of course, it’s been a tough year for all markets — cryptocurrency and stocks alike. Issues ranging from economic hardship, the risk of recession and the Ukrainian war have been cited. Stocks are trading at fairly depressed levels, while crypto has shown a direct correlation. If it makes sense that the stock market will return, it is also a completely real hope of a crypto recovery. The question is when?
Perhaps, it is too early to think that the risk will recover as quickly as possible. However, popular analyst Will Clemente says that the markets are trading significant on bitcoin at $20K. Clemente relies on several on-chain metrics to argue the case.
According to the analyst, there is huge institutional demand for bitcoin on Coinbase below $20,000. Analysts say regulatory compliance has been attractive to institutional holdings on Coinbase. He noted clear bids on bitcoin from the $18,500 price to the $11,000 level. He says that the same confluence is being seen at other places as well.
Technical Indicators Supporting BTC Attraction?
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Source – TradingView
Bitcoin’s daily chart has become a staple for technical readers. The price formed multiple bottoms at $19,000, indicating potential bear exhaustion. The RSI reading of 50.33 shows that buyers and sellers are in a square at the moment. This was in the midst of high inflation numbers last week that forced a sudden crash in BTC. However, the price of the cryptocurrency is showing limited upside.
Is Bitcoin Valuation Below $20K?
A large accumulation of institutional investors suggests that they see value in BTC at the current price. Coupled with multiple bottoms at $19,000, the price is undervalued. Potentially, bitcoin could recover from current levels. Further downside may be minimal and long-term holders should be satisfied with buying a $20K or $19K dip.