Bitcoin is at the ‘most oversold levels in history,’ according to analyst

Bitcoin is currently trading at historically oversold levels, according to prominent cryptocurrency trader and market analyst Michael van de Poppe.

In a post shared on X (formerly Twitter) on November 27, Poppe highlighted that the Bitcoin MVRV Z-Score (2-year rolling) has fallen to ‘its lowest reading on record,’ indicating that the cryptocurrency may be trading significantly below its fair value based on on-chain metrics.

The MVRV Z-Score compares Bitcoin’s market value against its realized value to identify underpriced or overheated conditions. Historically, extreme negative readings have aligned with major macro bottoms, notably the December 2018 low near $3,200 and the FTX-driven collapse in late 2022, when Bitcoin briefly fell below $16,000 before staging one of its strongest annual recoveries.

Commenting on the indicator, Poppe noted:

“It’s never been this low. Yet, people wanted to buy at these levels at $120K and are now looking to buy at $60K. Never change the markets. However, the chances of this market to recover as fast as they do are significantly larger when you look at the overall data.”

The analyst’s comments come as Bitcoin price today trades above $91,500, staging a rebound after briefly slipping below $86,000. The cryptocurrency is attempting to stabilize following a 19.78% 30-day decline, while nearly $100 billion flowed into BTC’s market cap within 24 hours, as reported earlier by Finbold.

If history is a guide, periods when the MVRV Z-Score reaches extreme lows have tended to precede strong medium-term recoveries. While the indicator does not provide immediate timing signals, it often highlights accumulation zones for longer-term investors rather than exit conditions.