Analyzing Bitcoin's Current Market Position

Recent data from CryptoQuant shows that Bitcoin is currently situated in an opportune “buy-the-dip” scenario. The Puell Multiple, a metric that tracks miners' daily earnings against their annual average, has recently dipped into the discount zone after Bitcoin's price fell to multi-month lows around $80,500.

Related:_ Bitcoin experiences another downturn this month, but a resurgence in demand might be on the horizon: Bitfinex._

When the Puell Multiple drops below 1, it signifies that miners are earning less than usual, signaling potential financial stress and possible capitulation. Currently sitting at 0.86, this metric indicates that the market is undervaluing Bitcoin, as noted by CryptoQuant analyst Gaah in a QuickTake analysis.

This current level mirrors conditions from April 2025 when Bitcoin was trading near $75,000, just before it experienced a substantial 50% rally that peaked at its former all-time high of $112,000 on May 22.

Bitcoin Puell Multiple and price comparison. Source: CryptoQuant

“Throughout history, major correction reversals have initiated from these discount zones," mentioned the analyst.

Additionally, metrics from Capriole Investments reveal that Bitcoin's MVRV Z-Score, which compares Bitcoin’s market capitalization to its realized value while accounting for volatility, recently dropped to a two-year low on November 22. Past drawdowns in Bitcoin have consistently shown a decline in the MVRV Z-score, with notable recoveries beginning once the score dipped below a critical threshold, indicating Bitcoin has become significantly undervalued.

Currently at 1.13, the MVRV Z-score is near this key threshold, suggesting that the BTC/USD pair might be hitting a local bottom. Similar scenarios observed at the end of 2023 were followed by an impressive 80% price increase in the final quarter.

Bitcoin MVRV Z-score. Source: Capriole Investments

Targeting a $96,000 Bitcoin Price Rebound

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin has gained 8.6% since its local low of $80,500, showcasing a bullish flag pattern indicative of a possible short-term rebound.

This bullish flag became evident once Bitcoin's price surpassed the upper trendline of the flag at $87,200 on Wednesday. Currently, the BTC/USD pair is retesting this level to confirm the breakout.

If the breakout is confirmed, it would open the door for a rally towards the target price of $96,800, reflecting a 10.6% increase from the present price level.

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

Adding to the bullish sentiment, the relative strength index (RSI) has improved to 51 from previously oversold levels, indicating increasing upward momentum.

However, veteran trader Peter Brandt cautioned that Bitcoin's rise to $89,000 could merely be a "dead cat bounce," suggesting that traders might still face another downward move.

As previously reported by Cointelegraph, a significant liquidation event could see Bitcoin drop below $80,000 once more, indicating that the current market turbulence may not yet be resolved.