CryptoCurrency News - June 28, 2022

The cryptocurrency market has decreased tremendously over the past few weeks and the bulls have so far been unable to recover convincingly. Fortunately, Bitcoin’s price managed to reclaim the critical $20K level, but analysis shows that it’s still in a territory that’s considered to be significantly undervalued.

  • Will Clemente, a well-known cryptocurrency analyst, took it to Twitter to reveal that BTC can be considered “incredibly cheap right now.”
  • He based his opinion on historical analysis – the cryptocurrency is currently trading below the 200-day moving average and this has only happened for about 3% of its entire existence.

Bitcoin is incredibly cheap right now.

It has only traded this far below its 200-day trend and its aggregated cost basis for 3% of its entire existence.

img1_glassnode
Source: Glassnode

 

  • Naturally, it’s a matter of speculation whether or not this can be interpreted as a bearish or a bullish signal because history is not an indication of future performance. Some analysts seem to believe that the 200MA is now acting as major resistance, while others consider this to be a great time for long-term spot accumulation – a thesis that’s supported by history.
  • Nevertheless, CryptoPotato recently reported that the amount BTC sitting on exchanges recently dropped to a 3-year low. This is objectively a signal that means selling pressure diminishes as users move their cryptocurrency off exchanges.
  • At the same time, some analysts believe that BTC has yet to see its bottom for this cycle, based on other historical comparisons.
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