After falling below $19,000 ahead of the release of the US Consumer Price Index, bitcoin (BTC) had a relatively peaceful weekend. In particular, it has returned to its trading range from the beginning of last week, and is slow to show signs of volatility.
Although most analysts announce the inevitable arrival of the latter, Will Clemente prefers to look at the current value of cryptocurrency. In a new interview with the YouTube channel Altcoin Daily, the well-known crypto analyst claimed that the cryptocurrency is “grossly undervalued”.
Also Read: Bitcoin Stays To $19,000!
A situation due to the strong presence of institutional investors on Coinbase
Will Clemente took an interest in bitcoin order books on major market exchanges, and noticed a confluence towards the Coinbase spot market. This would be especially due to the strong presence of institutional investors on the exchange according to the analyst.
He justifies this by listing Coinbase and the efforts the latter has made this year in terms of compliance and regulation. Therefore, US institutional investors would be “more comfortable operating on Coinbase than on another foreign exchange such as Binance or KuCoin”.
However, the latter resulted in a multiplication of bids from $18,500 up to $12,000, or even $11,000, for bitcoin. The analyst went on to say that the strong demand for $19,000 bitcoin eventually spread to other platforms.
“This demand is converging on many other platforms as well, especially in the spot markets. This also indicates the presence of a value zone for BTC below $20,000. I would say it is very underrated. »
Also read: Prepare for BTC volatility: 5 things to know about bitcoin this week
Will Clemente continued to claim that BTC could eventually move into “extremely undervalued” territory, following a macro sell-off event. So far, the cryptocurrency continues to trade above $19,500 at the time of writing.