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On-chain indicators signal that the current $BTC price is undervalued
If you're long-term investors who can hold Bitcoin for over a year, these indicators based on basic network/UTXO/miner stats might be helpful. Most Bitcoin cyclic indicators are saying we're close to the bottom. The current market has a significant unrealized loss as you can see from NUPL, MVRV Ratio, Realized Cap-UTXO Age Bands (%), SOPR Ratio, and Puell Multiple. On the other hand, there's a spike in the MPI, meaning miners are distributing more than their daily distribution in the moving average of the past 365 days. That's because Bitcoin miners' profits are squeezed as revenue has fallen to the lowest level since October 2020, while costs (mining difficulty) are still high. Miners have increasingly sent their bitcoin to exchanges to sell, which might indicate some miners' revenue can't meet the break-even point. However, our data demonstrate a miner capitulation event that has occurred, which has typically preceded market bottoms in previous cycles.