Bitcoin Undervalued Yet Missing Capitulation: Analyst Adler Warns of Waiting Pattern

Woofun AI reports that on-chain analyst Axel Adler Jr. identifies a critical divergence in Bitcoin’s current market structure: while valuation metrics indicate an undervalued zone, the essential capitulation event and upside momentum required for a cycle bottom remain absent.

The deeper driver of this valuation gap is the MVRV Z-score, which has declined to 0.42. This figure is four times lower than the historical average of 1.7, signaling that the asset trades below fair value.

Notably, however, the metric stays above zero, implying that extreme panic levels have not yet been reached.

Woofun AI data shows that seven-day realized profit and loss has shifted from negative readings to positive, indicating eased on-chain selling pressure and a move into a stabilization phase.

Structurally, this shift benefits long-term holders but fails to confirm a bottom because the sharp sell-off, panic, and high volume associated with capitulation are missing. Without flushing out weak hands, the demand necessary for a sustained upside move remains absent, leaving the market in a waiting pattern rather than a recovery phase.

Investors should remain cautious as the market stabilizes without definitive bottom confirmation. A new uptrend requires clearer demand signals to validate the transition from this waiting pattern to genuine growth.