Crypto Dan
Bitcoin Approaching the Undervalued Zone
Following its all-time high in October 2025, Bitcoin has been in a downtrend for approximately four months and is now approaching what can be considered an undervalued zone. Generally, when the MVRV ratio falls below 1, Bitcoin is regarded as undervalued. At present, the indicator stands at around 1.1, suggesting that price levels are nearing the undervaluation range. However, unlike previous cycles, Bitcoin did not experience a sharp rise into a clearly overvalued zone during the recent bull cycle. This distinction is important to recognize. As a result, the current decline may also differ from past market bottoms, and it appears necessary to respond with this possibility in mind. Based on experience, I believe that for most investment assets with a long-term upward trajectory, effective preparation tends to begin during downturns, increasing the likelihood of favorable outcomes.