In today’s crypto news, CryptoQuant analyst DanCoinInvestor suggested that Bitcoin may be approaching one of the best buying opportunities of the current cycle. He revealed that Bitcoin’s MVRV ratio has dropped to 1.1, placing it just above a valuation zone that has historically marked major market bottoms.
The analyst noted that a further decline into the low $50,000 range would likely push the metric to 1.0. That level has appeared at the bottom of every major Bitcoin bear market over the last decade, including 2015, 2019, and 2022. Each time, a strong recovery followed.
Bitcoin Nears Historic Undervaluation Zone
The MVRV ratio compares Bitcoin’s market value to its realized value, or the average cost basis of coins held across the network. Investors use the metric to determine whether Bitcoin is trading above or below its historical fair value. When MVRV rises above 3.5, Bitcoin has historically been overbought and near a cycle top. Conversely, when it falls toward 1.0, the asset enters an undervalued region, characterized by extreme pessimism and market capitulation.
Bitcoin now sits at 1.1. According to the CryptoQuant analyst, the current price can already be considered relatively cheap from a cycle perspective. While further downside remains possible, current levels are approaching a range that has historically delivered some of Bitcoin’s strongest long-term returns.
The signal came after one of the most difficult periods for crypto markets this year. Bitcoin crashed to an intraday low of $59,100 over the weekend, triggering panic across the sector.
Several factors fueled the selloff. Strategy’s surprise Bitcoin sale rattled investors who had long viewed Michael Saylor’s company as a permanent buyer. The sale introduced renewed uncertainty, causing many institutional investors to abandon their positions in crypto and crypto-linked investment vehicles. Following suit, spot Bitcoin ETFs extended their outflows, losing nearly $5 billion over the last three weeks.
History Suggests Bitcoin May Be Near a Bottom
Bitcoin’s current MVRV reading offers some hope for the asset’s trajectory, and is noteworthy because of its track record. In 2015, Bitcoin entered the same undervaluation zone before beginning a multi-year bull market. The metric flashed a similar signal in 2019 after a severe correction. Another strong recovery followed.
The pattern repeated during the 2022 bear market and FTX collapse. MVRV entered the green undervaluation zone as sentiment reached extreme lows. Bitcoin later recovered and rallied into the highs of the 2024 and 2025 cycle.
Notably, the metric does not predict exact bottoms. DanCoinInvestor hypothesizes Bitcoin could still fall into the low $50,000 range before establishing a final bottom. If that happens, MVRV would likely reach 1.0 and enter full undervaluation territory.
However, the analyst believes that move would create opportunity rather than a reason for panic. Bitcoin has only visited this zone a handful of times over the past decade. Each visit eventually produced substantial gains for investors willing to hold through the uncertainty.
Temitope Olajide
