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The Bitcoin (BTC) price has been consistent over the past week, resting its head just above the $26,000 mark and leaving investors unsure of its future. While several on-chain signs indicate that Bitcoin is undervalued, chart weakness remains. 
The NVM ratio for Bitcoin has lately increased to 0.52 and is now below the 0.6 level, which normally indicates undervaluation. The “NVM ratio” is a metric that looks at the relationship between the square of Bitcoin’s daily active users and the logarithm of its market value. 
A high NVM ratio indicates that Bitcoin is overvalued; conversely, a low ratio indicates that Bitcoin is undervalued. Given the strong network activity, the current decreasing trend of this indicator suggests the possibility of a price increase. 
On charts, the price of Bitcoin (BTC) is declining. The SuperTrend indicator for Bitcoin has been flashing sell signals and indicating a more significant price fall. The BTC price has to close above the $29,500 level, which is 14% higher than the present levels, to confirm any positive reversal. A more significant drop may be in store for Bitcoin if it cannot rise above this. 
Bitcoin’s technical chart continues to display signals of deterioration. The fact that the upper trend line of the triangle pattern still acts as resistance against the price of Bitcoin shows that bearish traders are still selling as the price rises. As a result, the price of BTC has remained constant between $25,300 to $26,800. The price of BTC is currently $26,041, up about 0.02% over the previous day. 
Consolidation towards the lower boundary of the triangle pattern would imply a lack of aggressive purchasing by bullish traders. The bulls are trying to raise bitcoin’s price above the EMA20 moving average to support their long bets. The RSI level is still below the midline, giving bears the advantage of stopping a rise immediately. 
If the price falls below $25,300, several traders may place stop-loss orders, potentially leading to a chain reaction of long position liquidations. In this case, the price of BTC might drop towards the crucial $24,700 support level. 
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The post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/bitcoin-btc-undervalued-but-charts-show-further-correction-pending/">Bitcoin (BTC) Undervalued, But Charts Show Further Correction Pending</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Bitcoin (BTC) Undervalued, But Charts Show Further Correction Pending

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