Bitcoin price has blasted right through key resistances, up six days in a row so far. This rosy momentum is occurring as all of crypto starts to mirror a wider market macroeconomic macros. With Bitcoin’s price surging above $94,000 in the wake of the rally, the new market sentiment appears bullish.
Notably, Bitcoin has breached its daily Simple Moving Averages (SMA) of 50 and 200, which are currently at $84,501 and $88,857, respectively. These levels had served as powerful resistance, trapping Bitcoin’s price in a cage since early February. As of Tuesday’s big news Bitcoin moved from $87,077 to $93,952 and has since broken above $94,000 in the following sessions.
Bitcoin’s bullish long-term outlook is healthier than ever. At present, it is priced at over 70% of discount to its intrinsic value, as supported by the Bitcoin Energy Value model. Our friend Charles Edwards at Bitcoin Misfits created this model to help estimate Bitcoin’s intrinsic value. Its starting point is the raw energy input to the entire mining network. Today, the Bitcoin Energy Value stands at $130,000, implying that Bitcoin’s market price is about 40% undervalued.
This progress celebrates the one-year anniversary of Bitcoin’s fourth halving. This historical precedent greatly increases supply tightness and tends to precede most large bull runs. The reality is that the market has finally reacted positively to a macro catalyst beyond traders’ dreams. As you may have noticed, equities and cryptocurrencies including Bitcoin are rallying to new highs.
