Overvaluation of Bitcoin (BTC), Correction to $6,000 BTC/USD Exchange Rate Likely


Latest Bitcoin (BTC) Price Action News and Updates

Well, Mike Novogratz, the main Bitcoin agitator and founder of Galaxy Digital Capital surprised many during the Ethereal Summit when he admitted that the second most valuable network’s main currency, ETH, would likely eclipse Bitcoin (BTC) because it is way ahead, poised to dominate Web 3.0 and out-do competitors like Polkadot and Cosmos.

Read: Bitcoin to the Moon or Correction to Hell: What’s Around the Corner for the Price of Bitcoin?

To some extent, this is true because although Bitcoin is dominant and a preferred asset for investors, its smart contracting capability is yet to be activated leaving Ethereum as this flexible platform where projects can be tokenized, opening up myriad of opportunities.

All the same, Bitcoin is preferred by institutional grade investors because not only is the asset stable, certified decentralized with deep liquidity  but most regulators are opening up to the idea that Bitcoin is not a competitor for their fiat issued currency but the $124 billion asset could be extra revenue, supplementing other economic activities as every transaction is taxable.

Also Read: Brad Sherman Argues Crypto Buying and Mining Should Be Banned During US Congressional Hearing

Even so, there are others like Brad Sherman, reported by Bitcoin Exchange Guide that are against the idea of cryptocurrencies, insisting that they are a threat to the USD dominance and a preferred reserve currency. According to Brad, the widespread use of Bitcoin by companies or individuals is a direct threat to the USD, reducing its influence and by extension their foreign policy.

BTC/USD Price Analysis

Bitcoin BTC

At the time of press, the price of Bitcoin (BTC) is up a massive 22.7 percent. The world’s on demand digital asset is on a roll thanks to a convergence of fundamental and price action. As it is, Bitcoin (BTC) is trending within a bullish breakout pattern and after bulls cleared the main resistance trend line, blasting above $4,500 as BTC unshackled itself from the three month trade range, bulls have been relentless.

So far, Bitcoin prices are up 70 percent, adding $24 billion weeks after the assets market cap edged past $100 billion, hours after retesting the $6,000 mark. Since bulls are clearly in charge as bars band along the upper BB, there is a temptation of FOMO.

However, caution should prevail. Bitcoin (BTC) is up, true, but there is an over-extension meaning there is a degree of overvaluation after the surge of May-11. With above average volumes, May-13 bear bar is above the upper BB and a correction back to the 61.8 and 78.6 percent Fibonacci levels at $6,000-$6,300 is likely before trend continuation.

In that case, risk-aggressive traders can liquidate their positions; fade the asset with targets at $6,300. On the reverse side, if prices spring back to trend, surging past $7,500 then our stance will be null.

Bitcoin’s price is $46,600.32 BTC/USD exchange rate today. The real-time BTC market cap of $871.97 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $25.07 Billion and live coin value change of BTC -2.97 in the last 24 hours.

Live Bitcoin (BTC) Price:

1 BTC/USD =$46,600.3155 change ~ -2.97%

Coin Market Cap

$871.97 Billion

24 Hour Volume

$25.07 Billion

24 Hour VWAP

$48.35 K

24 Hour Change

$-1,384.78

All Charts Courtesy of Trading View—CoinBase

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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