CryptoQuant Report Suggests Bitcoin Undervalued: Price May Decline Through 2023

• CryptoQuant analyst MAC_D recently reported that the leading coin Bitcoin [BTC] is not undervalued in the current market and its price might decline further into 2023.
• CryptoQuant analyst Lupin found that using BTC’s UTXO (unspent transaction output) in profit and loss indicators would accurately indicate whether the king coin was undervalued or not.
• CryptoQuant analyst Dan Lim found that there has been a shortage in coin accumulation by whales in the current bear market, which could be a sign of capitulation or temporary surrender to market conditions due to macroeconomic factors.

Bitcoin has been the leading cryptocurrency in the market since its inception in 2009. Despite its popularity, the leading coin has seen its fair share of ups and downs in terms of price and market sentiment. Recently, CryptoQuant analyst MAC_D released a report stating that Bitcoin is not undervalued in the current market and its price might decline further into 2023.

The report made an assessment of some on-chain indicators such as market-value-to-realized-value (MVRV), Net Unrealized Profit/Loss (NUPL), Puell Multiple, and Spent Output Profit Ratio (SOPR). According to MAC_D, these metrics showed that BTC had reached an undervalued level. However, it was hard to determine the specific timing for purchasing BTC.

Another CryptoQuant analyst, Lupin, found that using BTC’s UTXO (unspent transaction output) in profit and loss indicators would accurately indicate whether the king coin was undervalued or not. Lupin stated that historically, when UTXO in profit and loss indicators crossed, it marked the bottom of the market during the past three BTC halvings. Currently, however, this indicator has not yet shown a cross, indicating that BTC may still have room to fall.

The current bear market has also been associated with a shortage in coin accumulation by whales, as noted by CryptoQuant analyst Dan Lim. According to Dan Lim, there has been a correlation between large movements in the market and increased deposits of BTC by the top 10 whales onto exchanges to protect their investments. Lim suggested that this could be a sign of capitulation or temporary surrender to market conditions due to macroeconomic factors.

Overall, the CryptoQuant report suggests that Bitcoin is currently undervalued and its price might decline further into 2023. While it is uncertain when the exact bottom of the market will be, it is clear that the leading coin has seen significant volatility in the past several months. Whether or not the market will improve in the coming months is yet to be seen, however, investors should remain aware of the potential risks associated with cryptocurrencies.