Is bitcoins [BTC] Consolidation at $30,000 creating a buying opportunity

Crypto investors have been stuck trying to time the market to lock in gains as the broader market continues to move sideways with no clear understanding of what will come next.

But while direct investments are observing fears among investors, indirect investment opportunities seem to be doing well.

Bitcoin finds its audience in ETFs

June 5 marks a month since the devastating crash that caused the king coin to plunge 23.5% in just three days. Since then, bitcoin itself hasn’t recovered, but its exchange-traded funds (ETFs) have actually seen growth.

The Canadian Purpose Bitcoin ETF has seen steady inflows for the past 30 days, right from the day the crash began. During these inflows, the ETF’s total holdings grew by 10,767 BTC and reached the ATH of 43,701 BTC ($1.3 billion).

Purpose Bitcoin ETF Holding | Source: Glassnode – AMBCrypto

At the same time, 3iQ CoinShares Bitcoin ETF holdings also grew by 3,917 ($116 million) as $29,000 was the right price to accumulate.

However, over the past few days, both ETFs’ holdings have declined by 3,200 BTC and 1,300 BTC, respectively.

3iQ Bitcoin ETF Holding | Source: Glassnode – AMBCrypto

But non-ETF investments are still in the doldrums as their demand continues to fluctuate wildly.

Grayscale Bitcoin Trust, the largest non-ETF bitcoin investment option, has seen the face of a premium since March 2021, and the same peaked last month when GBTC traded at a 31% discount.

Valued at $19.26 at the time of writing, GBTC is still 29% away from returning to premium.

GBTC trading with discount | Source: Ycharts

Add to that Bitcoin itself, which is definitely not lucrative for investors right now as there are no signs of a recovery anytime soon.

However, according to the Cost Basis Ratio (CBR) from short-term holder to long-term holder, the king coin is approaching a generational buying opportunity. Once the LTH CBR crosses the STH CBR, investing in the token would be ideal again.

Cost Base Ratio | Source: Glassnode – AMBCrypto

However, looking at the current divergence, it could take a few months for that to happen. Irrespective of this, Bitcoin is currently severely undervalued.

The last time Bitcoin was this undervalued was in March 2020, after which Bitcoin was embroiled in a multi-month rally that started at $5,195 and ended in January 2021.

Bitcoin Market Value | Source: Glassnode – AMBCrypto

While the same may not repeat itself this time, BTC can still see some spikes in the coming weeks.

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