Analyst: Bitcoin Returns to Historically Low Valuation Range After Facing Resistance Near $87K, Accumulation Signals Persist

Odaily reports: Crypto analyst Darkfost posted that after Bitcoin encountered resistance near approximately $87,000, the MVRV metric has fallen back below the historical 30th percentile (25.7%), indicating the market has re-entered a transitional phase following a capitulation-style sell-off.

Darkfost further noted that this metric does not merely measure the ratio of Bitcoin's market value to realized value, but rather places the current MVRV level in the context of historical evolution for comparison. The historical time proportion corresponding to the current valuation level is only about 25%, which still aligns with the characteristics of a market accumulation zone. However, Bitcoin has already exited the extreme undervaluation range, which has historically coincided with market bottoms.

(Note: MVRV is an on-chain metric used to gauge Bitcoin's market valuation, short for Market Value to Realized Value, i.e., the ratio of market value to realized value.)