Bitcoin is trapped in a downtrend, but a ‘trifecta of positives’ screams ‘deep value’

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$20,000 is no longer supported.

$100,000 didn’t happen.

The Bitcoin halving is 562 to dawn away.

Bears are simply refusing to let go of their unsound grip on the market and the Federal Reserve’s policy of rate hikes and quantitative tightening adds fuel to the fire.

Despite these challenges, on September 15th Twitter Space hosted by TBENCapriole Fund founder Charles Edwards explained why he is still optimistic about Bitcoin.

Edwards said several on-chain stats suggest that BTC is undervalued:

“I see an incredibly deep value and I call it a kind of trifecta and that we have three positive things in mind. One is cycle timing, where between years two and three, historically, was the low of all Bitcoin cycles. The second is that we’ve hit 90% of the normal cycle down draws Obviously all of these things could go lower but that alone is a good signal And then third, just the readings of pretty much all the on-chain stats “Whether it’s Mayer Multiple, whether it’s Puell Multiple, or N/A or rest period, everything is discounted by one in four years. So to me it’s kind of a cycle opportunity that we’re seeing right now.”

When asked about his thoughts on the previous Bitcoin halving and how the current economic environment could affect the next halving, Edwards said:

“I think it was successful because it placed Bitcoin as one of the hardest assets in the world amid massive money pressures. And we’ve seen a lot of the traditional traditional finance, legendary investors, Druckenmiller, etc. get into Bitcoin because of that, because it’s kind of like a hedge. And that sort of led to the next 6 to 12 months of rally. I also think the crypto industry is still running on the timeframe of the Bitcoin halving cycle. For now. I don’t think that they will go on forever, but for now I still think it has weight and impact in how people invest in the space.With each subsequent halving, the incremental value of the decline in inflation for bitcoin is negligible because it is already – with except for Ethereum – the hardest asset, or harder than gold.”

2022 has proven that risk management and building a balanced portfolio is still a skill crypto investors are working on. Edwards said:

“Whatever your method, however you trade or invest, whether you use stop-loss as a strategy or not. You need to do some detailed modeling over as much data as possible and not just over two years of data, because that’s how entities have been blown up in the past. Do as much as you can, like at least 10 years of Bitcoin, and assume the worst and add another buffer element below that to manage your position.

Tune in and listen to the full episode!

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