Is Bitcoin undervalued? Clues that whales may already be buying

Key Takeaways 

Why is Bitcoin undervalued now?

The MVRV Ratio turned negative, signaling undervaluation zones and potential reversal as whales accumulated 56,372 BTC since late August.

What data supports a rebound case?

The NVT Ratio dropped 38% to 27.42, Weighted Sentiment recovered, and Open Interest rose 1.47%, showing cautious optimism.

Bitcoin [BTC] fell 8.8% from its $123.8K peak on the 13th of August to $112.2K, testing investor conviction. On-chain data, however, showed signs of potential strength. 

The Market Value to Realized Value (MVRV) Ratio turned negative, highlighting undervaluation.

At the same time, whale activity remains consistent as accumulation trends hold steady, and exchange reserves continue to drop. 

Together, these shifts hint at a potential buildup toward the next leg higher.

Stronger network health

The Network Value to Transaction (NVT) Ratio declined by 38%, placing it at 27.42. This sharp move downward suggested Bitcoin’s valuation was aligned more closely with actual network activity.

Importantly, such drops often coincide with periods where transaction volume strengthens relative to market cap, hinting at improved organic demand. 

While prices remain pressured, the healthier transaction-to-value alignment suggested that Bitcoin was entering a more sustainable growth phase, particularly if volumes remain resilient despite volatility.

Source: CryptoQuant

Bitcoin’s sentiment rebounds

Santiment’s Weighted Sentiment rebounded from deep negative readings back toward neutral. The shift highlighted fading bearishness, but conviction remained cautious as volatility continued to shape positioning.

Importantly, sentiment recoveries from such low levels often precede relief rallies, even if caution still defines trader behavior. 

The data suggested cautious optimism may be forming, which, if supported by steady accumulation, could help Bitcoin mount a stronger rebound attempt.

Source: Santiment

Traders refuse to step aside

Bitcoin’s Open Interest rose 1.47% to $41.97 billion. The modest increase indicated that traders kept positions open despite recent downside pressure.

Elevated OI, however, brings both opportunity and risk. While it highlights continued speculative demand, it also increases the potential for sharp liquidations if volatility escalates. 

Source: CryptoQuant

The persistence of positions amid a backdrop of undervaluation and whale accumulation reflects determination.

Is Bitcoin’s pullback a hidden accumulation phase?

Undervaluation, a healthier NVT ratio, recovering sentiment, and resilient Open Interest together suggested Bitcoin’s current decline may be an accumulation window rather than a collapse.

Whale buying and falling reserves added weight to this constructive backdrop.

While turbulence may continue, the evidence pointed toward accumulation taking shape, raising the chance of a rebound once forced selling eases.