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Bitcoin’s current price is about 40% below its “energy value.” Developed by renowned analyst Charles Edwards, the indicator takes into account the energy costs involved in mining Bitcoin. When the market price of Bitcoin is below this value, it has historically indicated a good buying opportunity for investors.​

Edwards believes that this price difference could be due to negative market sentiment or a lack of understanding of Bitcoin’s intrinsic value. He also points out that in the past, the market has seen significant growth when the price of Bitcoin was below its energy value.​ Bitcoin’s energy price is currently estimated at around $130,000.

The analysis suggests that Bitcoin may be undervalued right now, and investors could use this opportunity to enter the market.