Bitcoin nearing undervalued territory, analyst says

Bitcoin is approaching an undervalued zone after a downtrend of about four months since its all-time high in October 2025, according to an analysis by CryptoQuant contributor Crypto Dan. The on-chain indicator MVRV (Market Value to Realized Value), which signals undervaluation when below one, is currently at approximately 1.1 for Bitcoin. The analyst explained that unlike previous cycles, the recent bull market did not reach a clearly overvalued zone, suggesting the current downturn might not mirror past bottoms. He advised traders to prepare for this possibility. He added that for most assets with a long-term upward trend, preparing well during periods of decline often proves effective and can lead to favorable results.