Analyst: Bitcoin MVRV Z-Score Drops to Multi-Year Low, Market Undervalued but No Capitulation Signal Yet

Odaily reported that CryptoQuant analyst Axel Adler Jr. posted on the X platform stating that Bitcoin's MVRV Z-Score has dropped to about 0.42, nearly four times lower than the historical average of 1.7, indicating that Bitcoin is currently in an undervalued range. However, this metric has not yet entered the negative zone, which means the market has not experienced the “capitulation” typically associated with cycle bottoms.

Meanwhile, Bitcoin's 7-day Realized P/L has turned positive from negative, currently around $239 million, indicating a relief in on-chain selling pressure. Analysts believe that the market is currently in a phase of undervaluation and short-term stabilization, but the capitulation signal required to confirm the cycle bottom has not yet appeared, and there is a lack of a clear new round of demand drivers.