The previous intraweek session marked Bitcoin eighth week of consistent downtrends. Most traders and analysts are fearful of a greater decrease over the next seven days. However, there are several indications pointing to the top coin being undervalued.
The largest cryptocurrency by market cap was a hot topic at U.S. top bank JP Morgan. Analysts at the financial institution claimed that the BTC fair price at this time is $38,000. The current worth of the top coin is more than 28% lesser than the stated fair price.
Going by the above statement, we may conclude that the said actors are looking forward to a massive increase. Here are some indicators that support this claim
Price Correlation to NASDAQ
it is no news that bitcoin prices have seen more correlation with the Nasdaq 100. At the time of writing, equity was enjoying its second day of consecutive gains. It experienced a bullish divergence in the Moving Average Convergence Divergence (MACD).
The bulls seem to be riding on the indicator and the asset has gained almost 4% in two days. If the price correlation continues, we may expect BTC to also pick up momentum as the previously mentioned asset.
Bitcoin is yet to see Notable Uptrends
As per the rules governing MACD, once a cryptocurrency experiences a bullish divergence, it is bound to see more uptrend. Unfortunately, since the bitcoin crossing, there has been no notable increase.
Source: Whalemap
The reason for the coin’s failure to record significant positive change could be attributed to lack of demand concentration. There have been no large inflows into the market since the highlighted phenomenon.
With the equity market picking up, we may expect a correlating effect on the crypto market. One of the levels to watch out for is the $32k resistance. Stability above $30k may guarantee a retest of the highlighted mark
