Jurrien Timmer of Fidelity Thinks BTC is Oversold

Jurrien Timmer, the Director of Global Macro at Fidelity, stated Bitcoin is quite possibly “cheaper than it looks.” After analysis of the current price and on-chain data, Timer suggests the value of the Crypto may be higher than its current price.

He says that the price/network ratio is similar to the P/E ratio for a security. The price/network ratio is calculated by dividing Bitcoin’s price by the total volume transmitted on-chain. He believes in using the NVT to calculate a fair Crypto valuation and estimate current price action.

Timmer says that the higher a price/network ratio is, the more overvalued the price of Bitcoin is. Bitcoin’s NVT ratio has returned to levels seen in 2013 and 2017 bull markets, whereas the price has only fallen to late 2020. This means the NVT ratio is disproportionately lower than the price, possibly creating a buying opportunity.

Timmer follows up the Tweet by sending another, showing how much investors have oversold BTC. He said, “Glassnode’s dormancy flow indicator is now to levels not seen since 2011.” This metric can be used as another sign that Bitcoin is undervalued.

Peter Brand disagrees, placing a price target of $13,000 on Bitcoin’s price, citing a double-top technical pattern. Yesterday, he came up with a forecast that the next target for the BTC price might very well be around $13,000 based on a double-top pattern. A double top is an exceedingly bearish technical reversal pattern, and it forms following an asset reaching a high price two consecutive times, separated by a moderate decline between the two highs.

Arthur Hayes, the former CEO of BitMEX, also believes 20k is a hazardous threshold for Bitcoin. “As far as the charts go, you better get out your Lord Satoshi prayer book and hope the lord shows kindness on the soul of the crypto markets. Bc if these levels break, you might as well shut down your computer because your charts will be useless for a while.”

Author: Garrett Meifert

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