Bitcoin is giving us some signals that experienced people who deal with Bitcoin usually do not ignore. Bitcoin is currently trading near $69,900. Bitcoin has entered an area on the logarithmic Rainbow Chart. This is a price range where people usually buy Bitcoin than they sell.
What is really interesting about this situation is that it is very rare. Bitcoin has had five months in a row where the price at the end of the month was lower than at the beginning. This has only happened three times before in Bitcoins history. It happened once in 2011 and twice in 2018 when the market was really bad. Every time this happened before the price of Bitcoin went up by than 100% in the next five months. This is making long-term investors pay attention to Bitcoin.
The price of Bitcoin has gone down by 46-47% from its peak in October 2025 of around $126,000. This is a drop.. It is not as bad as the drops we saw in bear markets. Those drops were 80-85%. This suggests that the overall market for Bitcoin is still strong.
When we look at the data from the blockchain we see that Bitcoin is actually undervalued now. The MVRV Z-Score is between 0.39 and 0.43 which's lower than usual. People are moving their Bitcoin from exchanges to storage which means they are holding onto Bitcoin for the term. The price that people actually paid for Bitcoin is around $55,000-$56,000 and the current price of Bitcoin is getting closer to that. This is good for people who have been holding Bitcoin for a while.
The derivatives market is also looking better for Bitcoin. There is leverage, which means that there is a risk of a drop in the price of Bitcoin.. Even though we do not see it there is still demand for Bitcoin from investors. Big investors are still buying Bitcoin even though small investors are scared. Most other cryptocurrencies are doing badly which means that people are putting their money into Bitcoin instead. This is making Bitcoin stronger.
In the past when we had a streak of months like this it was usually followed by a recovery for Bitcoin. With the supply of Bitcoin getting smaller and the price of Bitcoin being lower more people are buying Bitcoin. It looks like Bitcoin is getting ready to go up than go down further. Bitcoin is closer to being undervalued and ready for a recovery than it is, to continuing to go down.
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