A bullish Bitcoin trend reversal is a far-fetched idea, but this metric screams “buy”

Non-crypto factors continue to weigh on BTC price, but a key on-chain metric that called the lows in the previous markets suggest that Bitcoin is severely undervalued.

Market Update

Bitcoin (BTC) price remains stuck below $22,000 as the lingering impact of the August 19 sell-off at $25,200 continues to reverberate across the broader market.

According to analysts at on-chain monitoring resource Glassnode, BTC's tap at the $25,000 level was followed by a "distribution" as profit takers and short-term holders sold as price encountered trendline resistance after a 23-day uptrend that saw BTC trading above its realized price ($21,700).

Total bitcoin inflows and outflows to all exchanges (USD). Source: glassnode

The company also noted that the "total inflows and outflows to all exchanges" metric shows exchange flows at multi-year lows and returning to "end-2020 levels ", which reflects a "general lack of speculative interest".

Stocks and crypto are clearly at risk until we hear the Fed's outlook out of Jackson Hole this weekend/ end. The $BTC price continues to fluctuate, but seems a bit "soft". pic.twitter.com/jpVjG2jslh

— Big Smokey (@big_smokey1) August 23, 2022

From a longer-term perspective, Bitcoin's current price action is simply a continuation of its nearly three-month chop in the $18,500-$22,000 range, but the real drag on sentiment is ongoing non-crypto related concerns in the US and global economy.

On August 25, the Jackson Hole Economics Symposium kicks off and the public will learn about the Federal Reserve's outlook on the U.S. economy, its plans for future interest rate hikes, if the goal of inflation stays at 2% and if the Fed thinks the U...