Analyst: Bitcoin MVRV Z-Score drops to multi-year low, market in undervalued zone but no capitulation signal yet

Odaily news, CryptoQuant analyst Axel Adler Jr. posted on platform X that Bitcoin's MVRV Z-Score has dropped to about 0.42, approximately four times lower than the historical average of 1.7, indicating that Bitcoin is currently in an undervalued range. However, the indicator has not yet fallen into negative territory, meaning the market has not experienced the "capitulation selling" typically associated with cycle bottoms.

Meanwhile, Bitcoin's 7-day Realized Profit/Loss has turned positive from negative, currently at approximately $239 million, suggesting that on-chain selling pressure has eased. Analysts believe that the market is currently in a phase of undervaluation and short-term stabilization, but it has yet to see the capitulation signal needed to confirm a cycle bottom, nor is there a clear new wave of demand driving the market.