Bitcoin Slips into Undervalued Zone as Capitulation Remains Elusive

Bitcoin has entered an undervalued zone according to on-chain metrics, but the market has not yet experienced capitulation, typically seen at cycle bottoms. This is according to Axel Adler Jr., an on-chain analyst who points out that Bitcoin's MVRV Z-score, a widely followed metric for identifying oversold and overbought conditions, has dropped to 0.42.

This is roughly four times lower than the historical average of 1.7, indicating that the asset is trading below its fair value. However, the metric remains above zero, suggesting that the market has not reached extreme panic levels.

Adler also highlighted that Bitcoin's seven-day realized profit and loss has turned positive after a period of negative readings. This shift indicates that on-chain selling pressure has eased, and the market is moving into a stabilization phase.