Bitcoin Is Undervalued And Oversold, Says Fidelity Top Executive Jurrien Timmer

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    Top exec at Fidelity thinks Bitcoin’s current market standings misrepresent its actual valuation.

    Bitcoin started on a good footing, but the events of the last few months have rolled back the gains made late last year.

    The coin is now reeling in pain as the price dropped from $30k down to the $20k-$22k range in less than a week. However, there are still many who think the coin is strong and could rebound hugely in the future.

    One of these people is Jurrrien Timmer who works as the director of global macro at one of the largest crypto investment firms, Fidelity Investments.

    The fall of BTC has brought the entire market with it, with the crypto market cap now totaling less than $1 trillion down from the highs of $3 trillion at the peak of the bull run months ago.

    Is Bitcoin Undervalued?

    According to Timmer, technical analysis shows that BTC may be undervalued at current levels. He mentioned the price/network ratio that he claims is currently at par with that of 2017 despite the price being lower than in December 2020.


    For this reason, Bitcoin’s real valuation may not be reflected by the current price levels. He went on to opine that actual valuation is always of more importance than the prevailing price.

    Timmer sought to prove his assertion further by referring to the current numbers of non-zero addresses associated with Bitcoin as compared to its price. Apparently, the chart shows prices running below the network curve. This could be an indication that BTC is undervalued.

    Is It Oversold?

    At the same time, Timmer thinks BTC is currently oversold. He shared an analytical Bitcoin chart from Glasnode. It showed that the dormancy flow indicator for BTC is currently at levels last seen back in 2011.

    “The next chart shows how technically oversold Bitcoin is.”


    At this particular time, BTC is trading at around $21,599 and recording a 3.7% decrease over the last 24 hours. The crypto has lost close to 30% of its value in 7 days.

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