Bitcoin Price Set for $88K Breakout? Analyst Reveals Bullish On-Chain Clues Pointing to Undervaluation

Bitcoin may be trading below its true value, according to a new analysis of on-chain metrics that has crypto bulls buzzing. On April 16, CryptoQuant analyst BorisVest broke down the data, arguing that several key indicators suggest that the Bitcoin price is still lagging behind its underlying fundamentals.

Exchange Reserves Plummet, Signaling Long-Term Confidence

BorisVest highlighted a dramatic drop in Bitcoin exchange reserves, now at just 2.43 million BTC, down sharply from 3.40 million during the 2021 bull run. “The Bitcoin exchange reserve data shows that Bitcoin is being withdrawn from exchanges after seven years. The fact that Bitcoin is not readily available for sale suggests it is being held for the long term. A decrease in Bitcoin supply supports a potential price increase,” he explained. This trend signals that investors are holding onto their coins, reducing available supply and potentially setting the stage for a price surge as demand rises.

Another bullish sign for the Bitcoin rally comes from the Stablecoin Supply Ratio (SSR), which currently stands at 14.3. BorisVest noted that this level indicates there is still ample purchasing power among investors, and the SSR remains well below its 2021 peak of 34. “This hints that BTC may be undervalued at its current price,” he added.

USDT Dominance and Technicals Hint at Bullish Shift

Crypto analyst Titan of Crypto observed a hidden bearish divergence in USDT dominance, which often signals a shift from defensive stablecoins back into riskier assets like Bitcoin. This rotation is typically seen as a precursor to renewed bullish momentum in the crypto market.

On the other hand, Bitcoin’s Relative Strength Index on the weekly chart has reversed its long-standing downtrend, fuelling hope among investors for a price recovery. With the price at $83,500 now, analysts believe that a Bitcoin rally to $100,000 is brewing if the pattern continues. Given that, let’s take a look at the latest Bitcoin price action and figure out where it’s going next. 

Bitcoin Price Analysis: Bitcoin Tanks! Ends Up at $83K

Bitcoin stood at $84,485 at the beginning of yesterday. It soon dipped to touch the $84,300 support level. At 00:20 UTC, a golden cross formed on the MACD, and Bitcoin started climbing the charts. Bitcoin faced several corrections but ascended in the general uptrend till 8:15. At 8:15 UTC, it faced rejection by the $86,000 mark. However, buying pressure persisted, and Bitcoin continued to test the resistance. But, Bitcoin failed to break the resistance and eventually faced a downtrend with the 9:25 UTC death cross. A correctional phase was observed, after which Bitcoin spiked up with a golden cross, but could only make it as far as $86,400. 

Chart 1: published on TradingView, April 15, 2025

This last upward spike was met by severe correction with a 13:55 death cross as Bitcoin first slumped to $84,950 by 14:30 UTC. An hour later, Bitcoin formed an extended downtrend, which would take it all the way down to $83,100 by 1:00 UTC on April 15. With the market now heavily oversold, the Bitcoin price faced a reversal. However, the uptrend could only take Bitcoin to $83,950 before losing steam. Since then, Bitcoin has been down to test the support. 

Bitcoin Price Prediction: Will Bitcoin Continue to Slump to $82K?

Bitcoin’s performance was impressive last week, and predictions of a potential corrective phase were made. The corrective phase is here, but it is important to note how far it goes. Currently, Bitcoin seems to be on the verge of abandoning its current support. If that does happen, the next stop for the Bitcoin price will be somewhere close to $82,000.