BlockBeats News, June 8th: Following a significant sell-off last week, Bitcoin's key on-chain indicator—MVRV Z-Score—is approaching the historical bear market bottom zone, indicating that the market price is gradually approaching the realized value on-chain, and the worst stage of the downturn may be nearing its end.

The data shows that the current Bitcoin MVRV Z-Score is 0.24, nearing the zero axis that has historically been seen as the "green accumulation zone." During the bear markets of 2011-2012, 2014, 2018, and 2022, this indicator has dropped to near zero or even briefly below zero before reaching a bottom and then starting a new uptrend.

MVRV Z-Score is used to measure the deviation between Bitcoin's current market value and Realized Value. When the market price is significantly higher than the realized value, it means that Bitcoin is relatively expensive; conversely, when the price is close to or below the realized value, it indicates that the market is in an undervalued zone.

However, analysts believe that the market may not have formed an absolute bottom yet. On-chain data shows that the short-term holder MVRV (STH-MVRV) is currently at 0.84, while the long-term holder MVRV (LTH-MVRV) is still as high as 1.29, and they have not yet converged as they did at the bottoms of the bear markets in 2015, 2019, and 2022.

This means that long-term holders still have significant unrealized profits, and the market may still need further adjustment to form a typical bear market bottom. However, after the cryptocurrency market lost billions of dollars in market capitalization last week, several signals historically indicative of market recovery have begun to emerge.