Bitcoin Indicator Suggests ‘Deep Value’ for BTC, as per ARK Invest Analysts
Analysts from ARK Invest have highlighted several on-chain indicators that are currently signaling positive market conditions for Bitcoin (BTC).
In a recent report by ARK, it was noted that BTC is still recovering from being oversold due to significant selling pressure from the German government. The government recently sold off coins that were confiscated from an illegal movie streaming website earlier this month.
David Puell, an analyst at ARK, pointed out that Bitcoin’s sell-side risk ratio for short-term holders (STHs) is now indicating a “deep value” territory following a prolonged correction period. This metric aims to forecast whether short-term holders are on the verge of selling their coins, potentially triggering a market correction.
Puell mentioned, “Another metric showing deep value was the sell-side risk ratio of short-term holders, reaching levels of oversold conditions last seen in late 2023.”
Additionally, Puell highlighted the miner outflow multiple indicator, which tracks instances where the amount of BTC leaving miner addresses is significantly higher than its historical average. This indicator is currently at a level that historically correlates with positive market movements.
“The miner outflow multiple, a measure of miner sentiment in the Bitcoin ecosystem, is at 80% of its annual average, a level typically associated with positive market reversals,” Puell remarked.
According to Puell, ARK anticipates that upcoming economic data could prompt the Federal Reserve to reduce interest rates, potentially benefiting Bitcoin despite the current hawkish stance of the Fed.
As of the time of reporting, Bitcoin is being traded at $67,383.
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