Bitcoin MVRV Ratio Remains Above 1

CryptoQuant has analyzed Bitcoin's market performance and found that it is not yet undervalued, despite a recent cooldown in prices. The MVRV (market-value-to-realized-value) ratio, which compares Bitcoin's market value to its realized value, has fallen sharply from the cycle peak but remains above 1.

This indicates that the market is no longer overheated, but it also means that the current phase cannot be considered a full bottoming process. According to CryptoQuant, 'Bitcoin's valuation has cooled substantially, but it has not yet entered the clear undervaluation zone seen in past deep accumulation phases.'

The analysis suggests that caution is warranted before declaring a bottom, as the MVRV ratio has yet to revisit the accumulation zone and confirm the latest correction as a full cycle bottom.