Bitcoin is edging toward levels that historically signal “undervaluation,” according to CryptoQuant contributor Crypto Dan, as traders look for evidence the market’s four-month slide since October 2025’s all-time high is moving from distribution into accumulation. What the MVRV is showing In a post on X, Crypto Dan said Bitcoin is “approaching the undervalued zone,” pointing to the market-value-to-realized-value (MVRV) ratio. Historically, MVRV readings below 1 have marked attractive entry points for longer-term buyers; the current MVRV sits near 1.10 — close to that threshold and noticeably compressed compared with previous cycle highs. Dan’s chart highlights earlier sub-1.0 dips that coincided with prior cycle lows. A cautionary note Dan warned investors not to assume this cycle will replay prior drawdowns exactly. Unlike earlier cycles, Bitcoin’s most recent run-up did not push sharply into the “overvalued” territory on common valuation measures, so the structure and timing of the decline — and the eventual bottom — could differ. That caveat prompted some debate in replies: one user asked whether a faster prior ascent might mean a faster winter; Dan replied that he’s setting criteria differently this cycle because of those differences. Other long-term indicators also point to accumulation Analyst Will Clemente flagged two other time-tested bottom signals that are now in historically constructive ranges: the Mayer Multiple (price relative to the 200-day moving average) and the 200-week moving average. Clemente’s chart shows a Mayer Multiple around 0.60 — a level that has previously aligned with long-term accumulation windows — and places the 200-week moving average at roughly $57,926. BTC is trading about 15% above that long-term trendline and has not touched it during the current drawdown. Where price stands At the time of reporting, Bitcoin traded around $67,277. Bottom line Multiple valuation metrics are converging into ranges that, historically, have offered compelling risk-reward for patient buyers. That said, analysts urge caution: structural differences in this cycle mean past patterns may not unfold identically, and these indicators are signals, not guarantees. Read more AI-generated news on: undefined/news

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