BTC reenters undervalued zone, analyst says

Bitcoin has reentered an undervalued zone, according to on-chain analyst Darkfost. In a post on X, Darkfost said BTC’s market value to realized value, or MVRV, percentile fell below 10% in February when Bitcoin dropped under $60,000, a level classified as a capitulation, or selloff, zone, and a similar pattern has reappeared since June. Darkfost said the indicator does not simply compare market capitalization with realized value like the standard MVRV metric. Instead, it shows where the current MVRV stands within its full historical distribution in percentile terms. Darkfost added this helps reduce the impact of Bitcoin’s long-term growth and changing market cycles, allowing for a clearer view of whether the market is relatively undervalued at present. The current MVRV percentile stands at around 5%, which Darkfost said suggests the current price is in a significantly undervalued range by historical standards. Based on past cases, Darkfost added, such low-percentile zones have repeatedly coincided with periods when long-term price bottoms were forming.