Is Bitcoin undervalued? Clues that whales may already be buying
The post Is Bitcoin undervalued? Clues that whales may already be buying appeared on BitcoinEthereumNews.com.
Key Takeaways Why is Bitcoin undervalued now? The MVRV Ratio turned negative, signaling undervaluation zones and potential reversal as whales accumulated 56,372 BTC since late August. What data supports a rebound case? The NVT Ratio dropped 38% to 27.42, Weighted Sentiment recovered, and Open Interest rose 1.47%, showing cautious optimism. Bitcoin [BTC] fell 8.8% from its $123.8K peak on the 13th of August to $112.2K, testing investor conviction. On-chain data, however, showed signs of potential strength. The Market Value to Realized Value (MVRV) Ratio turned negative, highlighting undervaluation. At the same time, whale activity remains consistent as accumulation trends hold steady, and exchange reserves continue to drop. Together, these shifts hint at a potential buildup toward the next leg higher. Stronger network health The Network Value to Transaction (NVT) Ratio declined by 38%, placing it at 27.42. This sharp move downward suggested Bitcoin’s valuation was aligned more closely with actual network activity. Importantly, such drops often coincide with periods where transaction volume strengthens relative to market cap, hinting at improved organic demand. While prices remain pressured, the healthier transaction-to-value alignment suggested that Bitcoin was entering a more sustainable growth phase, particularly if volumes remain resilient despite volatility. Source: CryptoQuant Bitcoin’s sentiment rebounds Santiment’s Weighted Sentiment rebounded from deep negative readings back toward neutral. The shift highlighted fading bearishness, but conviction remained cautious as volatility continued to shape positioning. Importantly, sentiment recoveries from such low levels often precede relief rallies, even if caution still defines trader behavior. The data suggested cautious optimism may be forming, which, if supported by steady accumulation, could help Bitcoin mount a stronger rebound attempt. Source: Santiment Traders refuse to step aside Bitcoin’s Open Interest rose 1.47% to $41.97 billion. The modest increase indicated that traders kept positions open despite recent downside pressure. Elevated OI, however, brings…
Filed under: News - @ September 24, 2025 2:16 am