Although Bitcoin is stuck in a downtrend a “trifecta” of positives shouts ‘deep value.

$20,000 is no longer considered support.

$100,000 didn’t happen.

Bitcoin halving is 562 days away.

The market is not being released by bears. Federal Reserve policy of interest rates hikes , quantitative tightening and interest rate increases are just two more examples.

Charles Edwards, founder of Capriole Fund, explained why he remains bullish on Bitcoin despite these difficulties in a Sept. 15 Twitter Space, hosted by Cointelegraph.

Edwards stated that there are several indicators that BTC is undervalued.

“I see tremendous deep value, and I kinda call it a trifecta. That is three positive things happening to my mind. The first is cycle timing. This is the time between years two-three, when all Bitcoin cycles have bottomed. We’ve reached 90% of normal cycle down draw. These numbers can be lower but it is still a decent value signal. Lastly, the readings of almost all on-chain metrics are at about one in four year discounts. It’s a once-a-cycle opportunity for me at the moment.

Edwards answered a question about the Bitcoin halving of the past and the impact of the current economic climate on the next halving.

It was successful because Bitcoin was positioned as one of the most difficult assets in the world during massive monetary printing. We did see some of the traditional financial investors, legends, Druckenmiller, and other old-school finance. It’s a hedge, so it was easy to get into Bitcoin. That kind of triggered the next 6-12 months of rallying. The Bitcoin halving cycle is still the best timeframe for the crypto industry. At least for now. They won’t last forever, but I believe they are still significant in the way people invest in this space. The incremental value of bitcoin’s inflation drop is negligible with each halving, because it is already — except Ethereum — the most difficult asset or harder than gold.

2022 proved that crypto investors still need to learn risk management and how to build a balanced portfolio. Edwards stated:

No matter what your trading or investment method, it doesn’t matter what strategy you use. It is important to model as much data as possible, not just two years. This is how entities have collapsed in the past. As much as possible, at least 10 years worth of Bitcoin, and then assume the worst. Then, add an additional buffer to help you manage your position sizing.

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Opinion writer on 7trade7