Bitcoin (BTC) is currently trading at a significant discount of 40% to its intrinsic value, according to Charles Edwards, the founder of Capriole Investments. Edwards pointed out that since the April 2024 halving, where block rewards were reduced to 3.125 BTC, Bitcoin's energy value, estimated based on mining costs and energy consumption, is at $130,000. This indicates a potential undervaluation of Bitcoin in the current market.

Recent data from CryptoQuant revealed that over 8,756 BTC, equivalent to $830 million, were withdrawn from Coinbase on April 24. This trend of negative netflows from Coinbase could signify institutional buying or ETF-related purchases, indicating strong underlying demand for Bitcoin. In line with this, Bloomberg ETF analyst Eric Balchunas noted that institutions have poured approximately $3 billion into Bitcoin recently, describing it as a "Bitcoin bender."

Similarly, Binance saw a significant outflow of 27,750 BTC on April 25, marking the third largest Bitcoin outflow in the exchange's history. Joao Wedson, the founder of Alphractal, cautioned that while large outflows and positive price movements suggest a bullish trend, it does not guarantee a sustained rally. Wedson highlighted previous instances where massive outflows did not prevent market downturns, emphasizing the need for cautious interpretation of such data.

Moreover, a fractal pattern analysis suggests that Bitcoin's price could potentially surpass $100,000 in April. The pattern, resembling Bitcoin's behavior in Q4 2024, indicates a possible uptrend in the coming days. Bitcoin's recent consolidation at higher levels, coupled with a notable increase in its price, reflects a similar trajectory seen in November 2024. The Relative Strength Index (RSI) also indicates strong buying pressure, with projections of a 7-10% surge in the near future.

However, the article warns that while historical patterns may repeat, they are not foolproof indicators of future price movements. Unlike the previous quarter when Bitcoin rallied without significant resistance, the current price faces a formidable hurdle at $96,100, which could impede a breakout beyond the $100,000 mark.

In conclusion, the crypto market is witnessing intriguing developments that hint at potential bullish momentum for Bitcoin. Institutional interest, significant outflows from exchanges, and fractal patterns all suggest a positive outlook for Bitcoin's price in the near term. Nevertheless, investors should approach the market with caution and conduct thorough research before making

Source: https://cointelegraph.com/news/bitcoin-trades-at-40-discount-as-spot-btc-etf-buying-soars-to-3-b-in-one-week?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound