Marc De Mesel: Crypto Overvalued Again (Especially Bitcoin Core)

  • Sunday, 22 November 2020 09:57
#Cryptocurrency currently at 520B, and with trendline at 450B, is again overvalued with about 15%. Last I did a Trololo analyses 2 months ago we were at 340B, -20% under-valued. Then I said the same as I say today, yes 40% exposure to #Crypto today is smart as there is a small but real chance that it goes into a bubble at anytime considering the relative low valuation of crypto vs other asset classes. However it is likely that we go back into serious undervaluation (hit green lower band around 200B) before we brake ATH's (of $800B for CMC) and go parabolic, as we did so in every other cycle, where bear and early bull market was categorized by a long period of being at undervaluation around the lower green band, not just hitting it once as we have done until today. Other indicators such as Fear & Greed index back at "Extreme Greed" only once seen before since early 2018, right before 6k BTC gave way and we hit bottom of 3k end 2018, as well as still high NVT ratio, proving low transaction ratio in #Bitcoin $BTC vs it's valuation, as well as a clear connection of Tether printed and BTC pumping, all indicate high chance for correction. Also corrected upwards target from 2.5T to 5T as I agree I made a mistake in my calculation, but then still not much changes to my overall analyses that there will be likely much better opportunities to invest in crypto over the next year allowing one to go to majority exposure again, but that you also cannot afford to have no exposure at all. Link: New trololo chart: https://twitter.com/MarcDeMesel/status/1330249506366099456 https://twitter.com/HeyAxP/status/1330235878321647620 https://aasasoft.org/investing/models/trololo.html My Google sheets: https://docs.google.com/spreadsheets/d/1WSeePxcqVyZ__99I-dAcvMBZuEzTq1DX8KzstSKoS5c/edit#gid=43

Additional Info

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Disclaimer: As a news and information platform, also aggregate headlines from other sites, and republish small text snippets and images. We always link to original content on other sites, and thus follow a 'Fair Use' policy. For further content, we take great care to only publish original material, but since part of the content is user generated, we cannot guarantee this 100%. If you believe we violate this policy in any particular case, please contact us and we'll take appropriate action immediately.

Our main goal is to make crypto grow by making news and information more accessible for the masses.