Analyst: Bitcoin MVRV Z-Score drops to a multi-year low; the market is in an undervaluation zone but has not yet shown capitulation signals

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ME News, July 27 (UTC+8): CryptoQuant analyst Axel Adler Jr. posted on X that Bitcoin’s MVRV Z-Score has dropped to about 0.42, roughly four times below the historical average of 1.7, indicating that Bitcoin is currently in an undervalued range. However, the indicator has not fallen into negative territory, meaning the market has not yet seen the “capitulation-style selloff” typically associated with cycle bottoms. Meanwhile, Bitcoin’s 7-day realized profit/loss (Realized P/L) has turned positive from negative, now at about $239 million, suggesting that on-chain selling pressure has eased. Analysts believe the market is currently in a phase of undervaluation and short-term stabilization, but it has not yet shown the capitulation signals required to confirm a cycle bottom, nor does it have a clear new round of demand catalyst. (Source: ChainCatcher)
BTC-3.02%
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