Why Bitcoin Is Cheap At $23,000, Says Fidelity Expert

Bitcoin has been pushed down further over today’s trading session and approaches critical levels of support. The first crypto by market cap gave back all the profits from last week rallied and has been moving in the red over the past 24 hours. Related Reading: Cryptocurrency Market Drains $50B As Bitcoin Touches Weekly Lows At the time of writing, Bitcoin (BTC) trades at $23,400 with sideways movement in the past day and a 2% loss over the past 7 days. Director of Macro for investment firm Fidelity Jurrien Timmer believes long-term Bitcoin investors have an opportunity to increase their holdings at current levels. Via his Twitter account, the expert claims Bitcoin is cheap as he explored the cryptocurrency’s price versus value chart. Timmer’s bullish thesis is based on BTC’s adoption curve and the likely scenario where this curve will continue to trend to the upside and increase the underlying value of the cryptocurrency. As seen below, there is a direct relationship between BTC’s adoption and its price. The chart below shows the BTC price/network ratio, how Bitcoin reacts to more adoption, and its price. The former metric trended lower than BTC’s price until it was able to break above a critical resistance zone and turn into support. Bitcoin has been moving on that support for over a month, coinciding with BTC’s price reaching a yearly low of around $17,700. As the chart above shows, these levels have historically operated we...