Bitcoin May Be Undervalued, On-Chain Metrics and JPMorgan Say $104K Support Could Lead Toward $120K

• Key signals: shrinking exchange reserves, steady ETF inflows, and a low MVRV indicate structural demand.

• Technical pivot: holding the 0.618 Fibonacci near $104.7K would likely open a path to $112K and then $120K.

• Risk controls: failure below $104K could expose $100K as the next meaningful support.

Meta description: Bitcoin rebound to $120K looks possible if $104K holds; on-chain metrics, ETF flows and cooling futures support upside—read expert analysis now.

Can Bitcoin rebound and target $120K?

Bitcoin rebound looks plausible if immediate support at the 0.618 Fibonacci retracement (~$104.7K) holds, unlocking short-term targets at $112K and $120K. On-chain metrics and institutional flows currently favor accumulation, while RSI and futures cooling reduce liquidation risk.

What on-chain signals support Bitcoin’s upside?

Exchange reserves are shrinking and ETF inflows remain steady, consistent with net structural demand. The MVRV Ratio at 2.1 sits well below overheated levels near 4, suggesting BTC is not in an overvalued state. These metrics align with institutional views that frame Bitcoin as a macro hedge rather than pure speculation.

Is cooling futures activity a sign of stabilization ahead?

Futures volumes have cooled, and the derivatives “Bubble Map” indicates reduced speculative intensity. Lower leverage typically precedes market stabilization because liquidation risk declines when volume and implied leverage fall.

Calmer futures markets give institutions room to accumulate methodically, favoring price discovery and prolonging sustainable rallies rather than impulsive spikes.

Source: TradingView

Does the NVT drop signal stronger network value?

Bitcoin’s Network Value to Transaction (NVT) Ratio fell over 23% to 23.7, indicating transaction activity is rising relative to market cap. A lower NVT has historically accompanied phases of healthier, more sustainable valuation expansion.

Maintaining a subdued NVT is important to avoid overheated valuations that precede corrective phases. Together with MVRV and exchange-reserve trends, the current readings suggest improving network fundamentals.

Source: CryptoQuant

How do technicals and risk levels shape the path to $120K?

Price traded around $108,450 at press time, rebounding from the 0.618 Fibonacci at ~$104.7K. RSI near 37 points to diminishing downside momentum and conditions edging toward oversold, favoring a controlled rebound if support holds.

Key levels to monitor: a confirmed hold above $104K–$108K targets $112K, then $120K–$123K. Conversely, a decisive break below $104K increases the probability of a test of $100K.

Frequently Asked Questions

What indicators show Bitcoin is undervalued?

On-chain indicators such as low MVRV (2.1), shrinking exchange reserves, steady ETF inflows and a falling NVT Ratio suggest Bitcoin is trading below structural fair value. These signals point to accumulation rather than distribution.

How should traders manage risk around $104K support?

Traders should size positions prudently, use stop-loss levels below $104K, and consider scaling into positions on confirmed bounces. Institutional flows and lower futures leverage reduce extreme tail risk but do not eliminate it.

Does institutional interest mean immediate price jumps?

Institutional accumulation often favors gradual, sustained gains rather than immediate parabolic moves. Cooling futures and lower volatility indicate institutions may prioritize efficiency and long-term positioning.

Key Takeaways

• Structural demand: Shrinking exchange reserves and steady ETF inflows support a bullish backdrop.
• Technical pivot: The $104K–$108K zone is decisive; holding it targets $112K and $120K.
• Risk management: Failure below $104K raises probability of a $100K test; use stops and scaled entries.

Conclusion

Combining JPMorgan’s institutional perspective, improving on-chain metrics (MVRV, NVT), and calmer futures markets provides a convincing case that Bitcoin rebound toward $120K is feasible if the $104K support area holds. Market participants should monitor volume, reserves and RSI while applying strict risk controls. COINOTAG will continue tracking developments and on-chain updates.