【New Trends in the Cryptocurrency Market: Is Bitcoin Undervalued? 🤔】

Hello everyone! Today we are going to discuss the latest market dynamics of Bitcoin. According to data from CoinGlass, despite Bitcoin reaching a historical high last week, its price may still be undervalued. Do you also find this a bit surprising?

First, let's take a look at the MVRV-Z score. This indicator is an important tool used to measure the market value and relative value of tokens. Simply put, it is calculated by subtracting the realized market value from the circulating market cap, then dividing the result by the standard deviation. Recently, Bitcoin's MVRV-Z score dropped from 3.3 last week to 2.84. According to historical data, a score below 3.7 typically indicates that the asset is undervalued.

Does this mean that Bitcoin is about to experience a strong recovery? Based on past market performance, during the two major adjustments in March this year and January 2021, Bitcoin's MVRV scores were 3.03 and 7, respectively. While we cannot fully rely on historical data to predict the future, it does provide some interesting observation points for the market.

Of course, the market is always full of uncertainties, and investors need to remain rational and cautious. Whether you are a long-term holder of Bitcoin or a newcomer just starting out, this is a moment worth paying attention to.

So, what are your thoughts on the future trend of Bitcoin? Feel free to share your views and insights in the comments! Let's explore this vibrant market together!