**[Analysis: Bitcoin in the "Extreme Undervaluation" Zone of the Rainbow Chart, Downward Deviation Exceeds Last Bear Market Bottom]** BlockBeats News, August 15 — CryptoQuant analyst Axel Adler Jr. published an article stating that Bitcoin's current trading price is in the lowest zone of the Rainbow Chart model — "basically a fire sale price." Relative to the long-term model price trajectory, this represents extreme undervaluation. This is not simply a measure of how much Bitcoin has dropped. The Rainbow Chart model compares Bitcoin's current price to its long-term trajectory, so this gap reflects the degree to which the market deviates from historical trends. The volatility-adjusted Z-Score is currently at -2.293 — the lowest reading since 2016, and lower than the bear market bottom of 2022, which was -1.979. This indicator accounts for differences in volatility across various market cycles. Therefore, this comparison indicates that the current downward deviation relative to the model has surpassed the bottom of the previous bear market. Bitcoin is currently in the extreme undervaluation zone, with the volatility-adjusted Z-Score hitting a 10-year low. This demonstrates the degree of undervaluation within the model but does not itself confirm the ultimate bottom. Extremely low valuations point to a potentially attractive range, but a market reversal still requires separate confirmation. Note: Z-Score is a commonly used standardized metric in statistics, used to measure how far a data point is from the mean, expressed in units of "standard deviation." [Original Link]