Bitcoin hits most undervalued level against gold, analysis suggests

Bitcoin is currently at its most undervalued level relative to the price of gold, a condition that could signal a bullish turn, according to an analysis by Cointelegraph. The analysis suggests a high probability of a strong Bitcoin price in 2026 based on historical patterns. Cointelegraph noted that after a similar signal of undervaluation against gold appeared in late 2022, the price of BTC surged by nearly 150%. This precedent suggests that extreme undervaluation can be a precursor to a major bull market. The recent Z-score comparing BTC and gold prices has fallen below -2, indicating that the standard deviation of Bitcoin's price relative to gold is significantly lower than its long-term average. Historically, rebounds have often begun when the Z-score approached this level. Consequently, the analysis posits that Bitcoin's price appreciation could outpace that of gold in the coming months.