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 <p class="is-style-lead">The <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s of top cryptocurrencies like Bitcoin have been fluctuating wildly in recent months. However, Eric Wall believes BTC is currently undervalued.</p>
 <p>As pointed out by developer Eric Wall, the Bitcoin Rainbow indicator suggests the cryptocurrency is now in the “buy zone” and severely oversold. He commented, “We’re so back.”</p>
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   Bitcoin is currently in the buy zone | Source: Look Into Bitcoin
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 <p>The Rainbow Chart uses colored bands overlayed on a logarithmic growth curve to visualize Bitcoin’s long-term valuation cycles. When the Bitcoin <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> enters the zone near the bottom of the curve, this suggests investor sentiment is very negative and Bitcoin is undervalued, signaling a potential buying opportunity.</p>
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 <p>Currently trading around $34,460, Bitcoin’s <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> has dipped into the “fire sale” band on the Rainbow Chart, which ranged from $31,149 to $41,503 when Wall tweeted his comment.</p>
 <p>While not a definitive predictive model, the Rainbow Chart has historically shown Bitcoin’s boom and bust cycles fairly accurately. Time will tell if this indicator proves correct again and Bitcoin is primed for a rally.</p>
 <p>In addition to the Rainbow Chart, the popular stock-to-flow (S2F) model also shows Bitcoin trading well below its predicted value. The S2F model treats Bitcoin like gold or other scarce commodities and predicts <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s based on existing supply versus new production. According to the S2F model, Bitcoin’s <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> should currently be over $51,200 – suggesting it is severely undervalued at its current trading <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>.</p>
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   <img decoding="async" width="1156" height="592" src="https://cdn.thebittimes.com/images/2023/10/24/16c9a583e742ba31698ef401ff0e80a0.webp" alt="Bitcoiner Eric Wall points out Bitcoin's price is 'fire sale' - 2"> 
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   S2F model for Bitcoin | Source: Look Into Bitcoin
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 <p>While Bitcoin remains a volatile asset, these predictive indicators offer some perspective on where its <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> could be in the long term. However, these models do not constitute investment advice, and actual Bitcoin <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s depend on market supply and demand dynamics.</p>
 <p>With crypto prices reacting strongly to macroeconomic conditions, geopolitical events, regulation, and other factors, short-term Bitcoin prices remain difficult to forecast with high accuracy. It is important to keep in mind that past performance does not guarantee future performance — something true both for assets and price prediction models.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoiner-eric-wall-points-out-bitcoin-s-price-is-fire-sale-tbt67543.html">https://thebittimes.com/bitcoiner-eric-wall-points-out-bitcoin-s-price-is-fire-sale-tbt67543.html</a></p>

Bitcoiner Eric Wall points out Bitcoin’s price is ‘fire sale’

TheBitTimes

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