Glassnode data shows that Bitcoin's MVRV Z-Score indicates that it is closer to being undervalued, reflecting potential buying opportunities. In the past year, this indicator has fluctuated greatly, reflecting the price trend of Bitcoin volatility.

Note: The MVRV Z-Score evaluates whether Bitcoin is overvalued or undervalued relative to its "fair value".

The Z-Score index reached a high point of about 3 points in March of this year, coinciding with the time when Bitcoin rose above $70,000. Since then, the Z-Score index has dropped significantly. This decline indicates that the market is moving away from potential overvaluation and approaching levels historically associated with undervaluation.

As the Z-Score tends towards the lower end, it indicates that Bitcoin may be approaching a period of being undervalued relative to its realized value. Historically, a Z-Score value near 0 indicates a market bottom, indicating that Bitcoin's current position may provide a favorable entry point for long-term investors. (CryptoSlate)