Bitcoin nears undervalued zone, CryptoQuant data shows

News brief: According to on-chain analytics firm CryptoQuant, Bitcoin is approaching what could be considered an undervalued zone after roughly four months in a downtrend following its October 2025 all-time high. The MVRV ratio — which compares market value to realized value — is currently around 1.1, moving closer to the level below 1 that has historically signaled undervaluation.

Analysts note that, unlike prior cycles, the latest bull run did not push deeply into a clearly overvalued range, marking a structural difference in market behavior. As a result, the current drawdown and potential bottoming process may not mirror previous cycles. Historically, for assets with long-term upward trajectories, preparation during downturn phases has tended to improve the probability of favorable long-term outcomes.