BitcoinBTCThe upcoming. “undervalued” A classic indicator is nearing its turning point.
The following are key points.
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Bitcoins are not so Bitcoins “undervalued” The research suggests that its value has increased since March 20, 2023.
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First time in three years the MVRV ratio has approached its breakeven key level.
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MVRV Analysis sees Bitcoin on the verge of turning its downward trend around.
Bitcoin price metric echos $20,000 price
Onchain Analytics Platform: Research CryptoQuant Released on Friday, the key development in Bitcoin’s Market Value to Realized Value (MVRV ratio) metric is revealed.
This classic BTC ratio measures the value of Bitcoin by comparing its market cap with the most recent price that the supply moved. “realized cap.”
A value less than 1 means that the current supply of bitcoin is being undervalued. The BTC/USD exchange rate was down last week. dropped below $60,000, MVRV hit 1.13 — its lowest reading since March 2023, when it traded at just $20,000.
“Following its all-time high in October 2025, Bitcoin has been in a downtrend for approximately four months and is now approaching what can be considered an undervalued zone,” CryptoQuant’s Crypto Dan made a comment.
“Generally, when the MVRV ratio falls below 1, Bitcoin is regarded as undervalued. At present, the indicator stands at around 1.1, suggesting that price levels are nearing the undervaluation range.”
MVRV Last Registered Below 1 the start of 2023. The ratio reached its highest level at 2,28 when Bitcoin hit the latest record high in October last year.
Crypto Dan challenged the legitimacy of Bitcoin’s 52% decline from its all-time highests. He argued that neither the top or the bottom was typical of MVRV behaviour.
“However, unlike previous cycles, Bitcoin did not experience a sharp rise into a clearly overvalued zone during the recent bull cycle,” The research continues.
“This distinction is important to recognize. As a result, the current decline may also differ from past market bottoms, and it appears necessary to respond with this possibility in mind.”
Price of Bitcoin at the bottom “being forged right now”
This January, Cointelegraph reported Early signs suggest that BTC’s price may be about to reverse its trend.
Related: Binance teases Bitcoin bullish ‘shift’ as crypto sentiment hits record low
Recent historic lows were reached by the Z-score, which measures the ratio of MVRV divided by its standard deviation.
“The current Z-Score of $BTC is lower than during the bear market bottom in 2015, 2018, COVID crash 2020 and 2022,” crypto trader, analyst and entrepreneur Michaël van de Poppe observed at the time.
CryptoQuant’s GugaOnChain contributed this week. another Z-score iteration To show the BTC/USD exchange rate, click here. “capitulation zone.”
“The indicator suggests that we are approaching the historical accumulation phase,” In an accompanying blog post, he wrote:
“The statistical deviation of the Z-Score screams opportunity, signaling that the bottom of this downtrend is being forged right now.”
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Source: cointelegraph.com
