Analyst: After stalling near $87,000, Bitcoin returns to historically undervalued territory, with accumulation signals still present

On October 18, cryptocurrency analyst Darkfost posted that after encountering resistance around the $87,000 level, the MVRV metric has fallen below the historical 30th percentile (25.7%), indicating that the market has re-entered a transition phase following capitulation selling.

Darkfost further pointed out that this metric does not simply measure the ratio of Bitcoin's market cap to its realized cap, but rather compares the current MVRV level within the context of historical evolution. The current valuation level corresponds to only about 25% of historical time, which still aligns with the characteristics of a market accumulation range. However, Bitcoin has exited the extreme undervaluation zone, an area that has historically coincided with market bottoms.

(Note: MVRV is an on-chain metric used to gauge Bitcoin's market valuation, standing for Market Value to Realized Value, which represents the ratio of market value to realized value.)