2020 has been a turbulent year for Bitcoin and the aggregated cryptocurrency market, with the benchmark digital asset rallying to highs of $10,500 before facing a massive selloff that led its price to crater to lows of roughly $3,800.<\/p>\n
This capitulatory selloff has been followed by an intense rebound over the past few days, which has been further extended today as the crypto raced to highs of $6,900.<\/p>\n
Now, one key data metric is suggesting that Bitcoin is highly undervalued despite its rebound from its recent lows, which may signal that the crypto has significantly further room to climb in the days and weeks ahead.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading up marginally at its current price<\/a> of $6,200, which marks a slight climb from daily lows of $5,900, but a notable decline from highs of $6,900 that were set at the peak of this movement.<\/p>\n Although BTC has been able to buck the firm downtrend seen in the traditional markets over the past couple of days, the strength of its recent uptrend is unclear, and it still seems as though it may be prone to seeing further downside.<\/p>\n In spite of this, data presented from Glassnode \u2013 an on-chain research and analytics firm \u2013 shows that Bitcoin\u2019s stock-to-flow deflection model elucidates that BTC is currently highly undervalued<\/a>.<\/p>\n \u201cStock to Flow deflection is the ratio of BTC’s price and the S2F model. When deflection is larger than 1, Bitcoin is overvalued according to S2F. With a current value of 0.73, Bitcoin is considered significantly undervalued,\u201d they noted.<\/p><\/blockquote>\n Stock to Flow deflection is the ratio of $BTC<\/a>'s price and the S2F model.<\/p>\n When deflection is larger than 1, #Bitcoin<\/a> is overvalued according to S2F.<\/p>\n With a current value of 0.73, Bitcoin is considered significantly undervalued.<\/p>\n Live chart: https:\/\/t.co\/JuhZ8B2tE6<\/a> pic.twitter.com\/fUB7ZCKC4e<\/a><\/p>\n — glassnode (@glassnode) March 20, 2020<\/a><\/p><\/blockquote>\n\n