Report: Bitcoin’s April market price diverged from its fundamental value by $7,000

By the end of April the NVT Price indicator showed a fundamentally justified price for Bitcoin, the first cryptocurrency, at around $45,000 — roughly $7,000 above the market price. This is stated in the report ForkLog.

The chart shows that trends began to diverge since the start of the month amid a market correction.

The metric signalled Bitcoin was undervalued, yet the cryptocurrency continued to decline. On May 10, Bitcoin’s price fell below $30,000 fell below $30,000.

From the first ten days of April the aSOPR (7 MA) fell below the 1 level, remaining under that threshold for most of the month. This signalled a deterioration in market sentiment.

In the same period, the number of addresses with balances of 1 BTC or more reached a new high. This could indicate capital flowing into the asset from faster-depreciating altcoins.

Also in April, long-term investors’ confidence in Bitcoin’s prospects grew, and the risk-reward ratio became increasingly attractive — the Reserve Risk indicator continued its descent into the green zone.

Sponsored by the column “Bitcoin Industry in Numbers” — the global blockchain ecosystem Binance.

As reported in April, Glassnode analysts noted positive shifts in Bitcoin’s fundamental metrics.