Analysis: Bitcoin MVRV Percentile drops to 5%, historically associated with a long-term bottom range

BlockBeats News, July 21st, CryptoQuant analyst Darkfost published a post stating that after Bitcoin fell below $60,000 in February and entered the capitulation zone, the MVRV percentile dropped below 10%, reaching the historically defined undervaluation area. Since June, this indicator has shown a similar trend again.

Unlike the traditional MVRV indicator, the MVRV percentile measures the current MVRV relative to historical cycles. By incorporating a historical probability dimension, it can better reflect the current market environment.

Currently, the BTC MVRV percentile is around 5%, meaning that Bitcoin has been at a higher MVRV level for approximately 95% of its historical time. This shows that BTC is significantly undervalued compared to its historical evolution, and similar stages have often coincided with long-term bottom areas.