BTC enters undervalued zone, but lacks capitulation and upside momentum

Bitcoin has entered an undervalued zone, but the capitulation typically seen at cycle bottoms has yet to emerge, on-chain analyst Axel Adler Jr said on X. Adler said the MVRV Z-score, a metric used to assess oversold and overbought conditions, fell to 0.42, around four times lower than its historical average of 1.7, but remained above zero. BTC’s seven-day realized profit and loss turned positive from negative, indicating on-chain selling pressure has eased. He said the market has entered a stabilization phase while undervalued, but clear bottom signals and the demand needed to drive a fresh upswing are still lacking.