2020 has been a turbulent year for Bitcoin and the aggregated cryptocurrency market, with the benchmark digital asset rallying to highs of $10,500 before facing a massive selloff that led its price to crater to lows of roughly $3,800.This capitulatory selloff has been followed by an intense rebound over the past few days, which has been further extended today as the crypto raced to highs of $6,900.Now, one key data metric is suggesting that Bitcoin is highly undervalued despite its rebound from its recent lows, which may signal that the crypto has significantly further room to climb in the days and weeks ahead.Bitcoin “Undervalued” According to Key On-Chain Data Metric At the time of writing, Bitcoin is trading up marginally at its current price of $6,200, which marks a slight climb from daily lows of $5,900, but a notable decline from highs of $6,900 that were set at the peak of this movement.Although BTC has been able to buck the firm downtrend seen in the traditional markets over the past couple of days, the strength of its recent uptrend is unclear, and it still seems as though it may be prone to seeing further downside.In spite of this, data presented from Glassnode – an on-chain research and analytics firm – shows that Bitcoin’s stock-to-flow deflection model elucidates that BTC is currently highly undervalued.“Stock to Flow deflection is the ratio of BTC’s price and the S2F model. When deflection is larger than 1, Bitcoin is overvalued according to S2F. With a current value of 0.73, Bitcoin is considered significantly undervalued,” they noted.Stock to Flow deflection is the ratio of $BTC‘s price and the S2F model.When deflection is larger than 1, #Bitcoin is overvalued according to S2F.With a current value of 0.73, Bitcoin is considered significantly undervalued.Live chart: https://t.co/JuhZ8B2tE6 pic.twitter.com/fUB7ZCKC4e— glassnode (@glassnode) March 20, 2020Could BTC Still See Further Downside Before Firm Uptrend Begins?In spite of being undervalued presently, it is still a possibility that the crypto sees some further near-term downside.TraderXO, a prominent cryptocurrency analyst and trader on Twitter, explained in a recent tweet that he believes BTC is positioned to see some near-term downside due to its strong rejection at its recent highs, which could lead it as low as the $4,000 region.“BTC Few charts flying around pointing straight to 9k. Here is one scenario I’m looking at – Targeting 6k, then 5.5 and possible we retest 4’s. The key for me is if price can hold at the weekly 200MA if we were to retest the level,” he explained.$BTC Few charts flying around pointing straight to 9kHere is one scenario I’m looking at – Targeting 6k, then 5.5 and possible we retest 4’sThe key for me is if price can hold at the weekly 200MA if we were to retest the level. pic.twitter.com/DOVlaboT0j— TraderXO (@TraderX0X0) March 20, 2020If the crypto’s 200-day moving average is retested, an ardent defense of this level from bulls will be critical in order for the crypto to rally higher in the days and weeks ahead.Featured image from Shutterstock.