Bitcoin MVRV Z-Score Drops to 0.42, Signaling Undervaluation Without Capitulation

Bitcoin MVRV Z-Score falls to 0.42, well below historical average, while positive Realized P/L indicates eased selling pressure despite lack of cycle bottom signals.

Woofun AI notes that Bitcoin's MVRV Z-Score has declined to approximately 0.42, a level roughly four times lower than the historical average of 1.7, placing the asset in an undervalued zone.

However, the metric remains above zero, indicating that the market has not yet reached the "capitulation selling" phase typically associated with cycle bottoms.

Meanwhile, Bitcoin's 7-day Realized P/L has shifted from negative to positive, currently standing at approximately $239 million, which suggests that on-chain selling pressure has eased. The data implies the market is in a short-term stabilization phase but lacks the definitive capitulation signal or new-cycle demand momentum required to confirm a bottom.