CryptoQuant analyst Axel Adler Jr. said Bitcoin is trading in the lowest band of the rainbow chart model, putting the asset at what he described as an extreme discount relative to its long-term model price path. He said the volatility-adjusted Z-Score has fallen to -2.293, below the -1.979 recorded at the 2022 bear market bottom. By that measure, Bitcoin’s downside deviation from the model is now deeper than it was at the prior cycle low. Adler added that the reading points to undervaluation within the model, but it does not on its own confirm that a final bottom is in place. He said a market reversal would still require separate confirmation.
CryptoQuant analyst Axel Adler Jr. said Bitcoin is now trading in the lowest zone of the rainbow chart model, placing it at an extreme discount relative to the long-term model price trajectory.
He said the volatility-adjusted Z-Score stands at -2.293, below the -1.979 seen at the 2022 bear market bottom. That indicates Bitcoin’s downside deviation from the model has moved beyond the level recorded at the bottom of the previous bear cycle.
Adler said the indicator shows the degree of undervaluation within the model, but cannot by itself confirm a final bottom. A market reversal still needs separate confirmation.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
