Bitcoin has reached its most undervalued level in three years, blockchain media outlet Cointelegraph reported on Feb. 13.

CryptoQuant, an on-chain analytics platform, said bitcoin's market value-to-realized value (MVRV) ratio has reached a threshold, raising the possibility that the price decline may be ending.

The MVRV ratio compares bitcoin's market value with the realized value, the price at which supply last moved. A reading below 1 indicates the current price is undervalued. After bitcoin fell below $60,000 last week, the MVRV dropped to 1.13, its lowest level since March 2023, when bitcoin was trading at $20,000.

Crypto Dan, an analyst at CryptoQuant, said bitcoin has been declining for about four months since hitting a record high in October 2025 and is approaching an undervalued zone. The last time the MVRV fell below 1 was in early 2023, when the MVRV rose as high as 2.28 from bitcoin's most recent record high.

But Crypto Dan said the decline differs from a typical MVRV pattern, adding: "In this bull market, it did not enter the overvalued area through a sharp rise like previous cycles."

Earlier this year, Cointelegraph reported that BTC prices may be wrapping up their decline. On a two-year rolling basis, the MVRV Z-score, calculated by dividing by the standard deviation of market capitalization, has fallen to a recent historic low.

Cryptocurrency trader and analyst Michaël van de Poppe said: "Bitcoin's current Z-score is lower than in 2015, 2018, the 2020 COVID crisis, and the 2022 bear market bottom."

More recently, another CryptoQuant analyst, GugaOnChain, said bitcoin is in a "capitulation zone" based on the Z-score indicator. He said: "The indicator suggests we are approaching a historic accumulation phase."