Bitcoin Z-Score Hits 10-Year Low at -2.293, Exceeding 2022 Bear Market Deviation

CryptoQuant data shows Bitcoin's volatility-adjusted Z-Score reached -2.293, surpassing the 2022 bear market low of -1.979, signaling extreme discount levels relative to long-term trends.

Woofun AI notes that CryptoQuant analyst Axel Adler Jr. identified Bitcoin as trading within the lowest range of the rainbow chart model, termed a 'fire sale price.' The volatility-adjusted Z-Score stands at -2.293, marking the lowest reading since 2016 and falling below the -1.979 level recorded at the 2022 bear market bottom. This metric accounts for volatility differences across cycles, indicating that the current downward deviation from historical patterns exceeds that of the previous cycle trough. While this extreme discount suggests an undervalued state within the model, it does not independently confirm a market bottom or imminent reversal.