Nikolaos Panigirtzoglou, the Managing Director for Global Market Strategy at J.P. Morgan Chase, has argued that Bitcoin (BTC) is currently trading at a price which exceeds its “intrinsic value.”

Panigirtzoglou, a former financial economist at the Bank of England (BoE), recently told Bloomberg that bitcoin’s current price movements are similar to when it reached an all-time high of nearly $20,000 on December 17th, 2017.

Panigirtzoglou also mentioned that the pseudonymous cryptocurrency’s price could fall just as sharply as it did following the historic crypto market bull of late 2017 and early 2018. According to the J.P. Morgan financial strategist, it’s possible to get a fair estimate of bitcoin’s “intrinsic value” by determining and factoring in its “cost of production.”

Bitcoin Price “Moving Sharply Over Marginal Cost”

Panigirtzoglou explained that Bitcoin’s cost of production may be calculated by accounting for the total amount of computational power securing its network, overall electricity costs to maintain the Bitcoin blockchain, and the energy efficiency of the hardware equipment being used by miners.

Commenting on the most recent bitcoin price movements, Panigirtzoglou noted:

Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.

“Hell Of A Bullish Weekly Close”

Panigirtzoglou acknowledged that “defining an intrinsic or fair value for any cryptocurrency is clearly challenging.” He added that some researchers argue bitcoin has “no fundamental value” while others estimate the cryptoasset’s “fair value in excess” of current market prices.

Meanwhile, Twitter user “The Crypto Dog” (@TheCryptoDog), a widely-followed crypto market analyst, believes the past week was quite bullish for bitcoin:

Bitcoin Price “Heating Up” For $10,000

Twitter user “Crypto Rand” (@crypto_rand), a prominent bitcoin trader and investor, has argued that the world’s most dominant cryptocurrency is exhibiting price movements which suggest that it might soon cross the $10,000 mark.

Bitcoin Is “Insanely Overbought”

Josh Olszewicz, an experienced technical analyst, tweeted to his nearly 120,000 followers on May 19th, 2019 that bitcoin is “insanely overbought.” This, according to technical indicators such as the Ichimoku Cloud, which is used to estimate key resistance levels and patterns for the bitcoin price.