Fidelity: BTC short-term signals bearish, long-term indicators suggest bottoming

While short-term signals for Bitcoin are predominantly bearish, long-term indicators are beginning to suggest the asset is entering undervalued territory, according to an analysis by Fidelity Digital Assets. The firm noted that BTC has been in a death cross state for 204 days and briefly dipped below its 200-week simple moving average of around $61,800 on June 5-6, a level that preceded forced liquidations when breached for an extended period in 2022. However, long-term metrics are showing signs of bottoming. As BTC nears its network average realized price of about $53,600, its MVRV-Z score is approaching zero, signaling undervaluation. This score is now below its February low, which may indicate that assets bought at higher prices are changing hands at lower prices. Fidelity also highlighted a divergence: the Fear & Greed Index, while in 'Extreme Fear,' remains above its February low, suggesting sentiment is not as poor as it was then, even though the valuation is lower. The analysis concluded that while short-term signals lean bearish, long-term indicators are starting to pivot toward forming a bottom.