Analysis: Bitcoin valuation hits historical extreme undervaluation, standing at the 3.4th percentile of the full cycle.

Analyst Darkfost, using the power-law quantile regression model, points out that Bitcoin has broken below a key support level, with market panic spreading rapidly. This stands in stark contrast to the profit-dominated market environment seen just a few weeks ago. Currently, Bitcoin has reached an extreme level of undervaluation; over its entire historical cycle, it has only stayed in this range roughly 3.4% of the time. Darkfost believes that instead of fearing the current market situation, investors should learn to capitalize on these extreme moments. In the long run, the strategy of buying the dip during such extreme undervaluation periods has consistently proven effective. When panic pushes valuations to their limits, it often creates strong long-term positioning opportunities.