Bitcoin Indicating Next Rally is Near

According to multiple analysts and indicators like the 2-year MVRV Z-Score, Bitcoin has reached historically oversold levels, surpassing those seen in the 2018 and 2022 bear markets. This is based on the metric's reading, which indicates most holders are experiencing unrealized losses,* a condition that in the past has preceded major cycle turning points and potential trend reversals.

MVRV Z-Score: The MVRV Z-Score, which compares Bitcoin's market value to its realized value, has fallen to its lowest point ever. This suggests Bitcoin is deeply undervalued and most of the market is holding unrealized losses.

Historical Comparison: The current level of oversold conditions is even deeper than what was seen during the 2018 bear market bottom and the 2022 FTX collapse.

Potential for Reversal: Historically, such extreme oversold signals have marked major turning points in Bitcoin's market cycles, potentially signaling an upcoming reversal or rally.

Market Psychology: Analysts note that this situation is often accompanied by fear among traders, even as data points to extreme undervaluation—a classic case of market psychology at work.

* You only experience a loss if you sell at a low point instead of holding.

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