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Odaily Planet Daily News Glassnode data shows that BTC's MVRV Z-Score indicates it is closer to being undervalued, reflecting potential buying opportunities. Over the past year, this indicator has experienced significant Fluctuation, reflecting the price trend of BTC Fluctuation.
Note: MVRV Z-Score evaluates whether BTC is overvalued or undervalued relative to its 'fair value'.
The Z-Score index reached a high of about 3 in March this year, coinciding with BTC's rise to above $70,000. Since then, the Z-Score index has dropped significantly. This decline indicates that the market is moving away from potential overvaluation and approaching levels historically associated with undervaluation.
As the Z-Score trends towards the lower end, it suggests that BTC may be approaching a period where it is relatively undervalued compared to its intrinsic value. Historically, Z-Score values near 0 indicate market bottoms, indicating that BTC's current position may provide a favorable entry point for long-term investors. (CryptoSlate)