Bitcoin slid more than 8% over the past week, deepening bearish sentiment across crypto markets as investors react to institutional repositioning, renewed flows into precious metals and the Federal Reserve’s decision to hold interest rates steady. Fear is widespread: CoinCodex’s Fear & Greed Index sits at just 16, signaling “extreme fear.” Still, on-chain indicators suggest the sell-off may be nearing a turning point. What analysts are watching - MVRV Z-Score signals potential bottom: Market observers Michaël van de Poppe and James Easton point to Bitcoin’s MVRV Z-Score — a metric that compares BTC’s market value to its realized value and expresses the gap in standard deviations — as flashing signs the multi-month downtrend could be ending. The Z-Score helps identify periods when Bitcoin is over- or undervalued and can highlight likely market bottoms and tops. - Historically deep undervaluation: James Easton notes the current Z-Score is lower than levels seen in the 2015, 2018, 2020 and 2022 bear markets, implying BTC is trading at a deeper relative discount than in those prior cycles. That suggests extreme capitulation may be behind us. - Price context: After reaching roughly $126,000 in early October, BTC faced heavy selling and has twice revisited the $80,000 area. Based on the MVRV readings, Van de Poppe says the bear market appears to be in its latter stages and that a rebound could be near, with immediate upside targets around $90,000 and $97,500. Other bullish signals highlighted - BTC/Gold momentum: Van de Poppe also flagged the Bitcoin-to-gold RSI dropping below 30 — an occurrence that coincided with the end of the last major Bitcoin market cycle — and noted gold recently hit a reported new all-time high of $5,600 on Jan. 30. He argues that gold topping out could free capital back into crypto; historically, a similar setup preceded a “mega rally” in digital assets. Market snapshot - BTC last traded around $83,645, with daily volume near $72.31 billion. Bottom line: Sentiment is extremely cautious today, but multiple on-chain and cross-market indicators are painting a picture of deep undervaluation and the possibility that the worst of this pullback is behind us — a scenario that would set the stage for a substantial rebound if buying pressure returns. Read more AI-generated news on: undefined/news