Bitcoin may be nearing the conclusion of its bear market, as a pivotal price indicator suggests it could be significantly undervalued.
Key Highlights:
- Bitcoin’s MVRV Z-score has reached unprecedented lows based on a two-year rolling analysis.
- Predictions indicate a likely price rebound for Bitcoin given the current data.
- Analysis suggests that the recent upswing in precious metals seems to be over for the time being.
MVRV Z-score Indicates Bitcoin’s Undervaluation
In a recent post on X platform, Michaël van de Poppe, a crypto trader and analyst, confirmed that Bitcoin’s MVRV Z-score has hit its lowest level ever.
“This is a phenomenal chart,” he remarked regarding the data, referencing its source, analyst James Easton.
Easton concurred, stating the chart appears ‘wild’ as it has decreased to its lowest historical values.
MVRV represents market value relative to realized value, serving as a metric to compare the most recent trading price of Bitcoin against its total market value.
Van de Poppe noted that the current Z-score for Bitcoin is not only lower than during bear market bottoms in 2015 and 2018, but also during the COVID crash in 2020 and the last bear market in 2022.
“That’s how deep we’re in the bear market, and yes, we’re close to the end of it.”
Precious Metals’ Role in Bitcoin Price Trends
Following a sharp decline in risk assets and precious metals this week, Bitcoin’s trading position fell to two-month lows.
BTC/USD reached $81,040, according to TradingView data, and as of the latest updates, it remains roughly 2% lower than the daily opening price.
In earlier reports, it was noted that the period leading up to the January monthly close might establish a long-term support level for Bitcoin, akin to past bear market conclusions.
Van de Poppe observed that both gold and silver prices were currently declining.
“I’m not saying the bull is over. No, far from it. But it will consolidate, and that’s also the trigger you’d like to see for Bitcoin.”
This article does not provide investment advice. Investment decisions involve risks, and readers are encouraged to perform independent research.
