ChainCatcher news, according to CryptoSlate, Glassnode data shows that Bitcoin's MVRV Z-Score indicates that it is closer to an undervalued level, reflecting a potential buying opportunity. Over the past year, the indicator has fluctuated significantly, reflecting Bitcoin's volatile price trend.
Note: The MVRV Z-Score assesses whether Bitcoin is overvalued or undervalued relative to its “fair value.”
The Z-Score reached a high of about 3 points in March of this year, coinciding with Bitcoin's rise above $70,000. Since then, the Z-Score has fallen sharply. This decline suggests that the market is moving away from potential overvaluation and approaching levels that are historically associated with undervaluation.
As the Z-Score trends toward the lower end, it suggests that Bitcoin may be approaching a period where it is undervalued relative to its realized value. Historically, Z-Score values around 0 have indicated market bottoms, suggesting that Bitcoin’s current position could provide a favorable entry point for long-term investors.
