Bitcoin MVRV Z-Score indicator shows that it is at an undervalued level, which may indicate a potential buying opportunity

Glassnode data shows that Bitcoin's MVRV Z-Score indicates that it is closer to undervalued levels, reflecting potential buying opportunities. Over the past year, the indicator has seen significant fluctuations, reflecting Bitcoin's volatile price trends. Note: The MVRV Z-Score assesses whether Bitcoin is overvalued or undervalued relative to its "fair value." The Z-Score index reached a high of about 3 points in March of this year, coinciding with the time when Bitcoin rose above $70,000. Since then, the Z-Score index has fallen sharply. This decline indicates that the market is moving away from potential overvaluation and approaching levels historically associated with undervaluation. As the Z-Score tends to the low end, it indicates that Bitcoin may be approaching a period of undervaluation relative to its realized value. Historically, Z-Score values ​​near 0 indicate market bottoms, suggesting that Bitcoin's current position may provide a favorable entry point for long-term investors. (CryptoSlate)