As per on-chain investigator Charles Edwards, the Bitcoin market’s “Bitcoin measuring stick” shows a recognizable example of 2019 lows. The Bitcoin yardstick is a standard method for valuing Bitcoin price.
Bitcoin’s current valuations coincide with 2019, when it traded near $4,000. Similar to a PE Ratio, the Bitcoin Yardstick calculates the energy work required to secure the Bitcoin network to price ratio instead of stock earnings.
Source: Charles Edwards/ Twitter
In context, lower readings indicate a bullish market and cheaper Bitcoin. Edwards’ chart indicates that the current readings are low, comparable to those of 2019. This suggests that, in comparison to the amount of energy required by the world’s most powerful computer network, Bitcoin is extremely inexpensive. This could suggest that Bitcoin is undervalued in terms of price.
Charles Edwards thought the Bitcoin bull market might have begun in January. He asserts that while this may have marked a significant turning point and the beginning of a new regime, it will not proceed in a straight line: Early bull markets can be slow and boring.
Expect the January fireworks to fluctuate throughout the year; It might be difficult, and there might be setbacks.” He adds in a blog post that the most significant Bitcoin returns might occur in 2024. The cryptocurrency price was under pressure on Friday as billions of dollars of options expired, and some traders placed bearish wagers on Bitcoin’s wrapped Ethereum-based version, WBTC.
BTC/USD 4-hour chart | Source: TradingView
At the hour of composing, the leading cryptocurrency by market esteem was possibly up at $28,313 as bulls rapidly stepped in to purchase the plunge.
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