Recent analysis indicates that Bitcoin (BTC) may be on the verge of a significant price rebound, with a target of $96,800, as key metrics suggest the cryptocurrency is trading in an attractive "discount zone." The Puell Multiple, which measures miners' daily revenue against their annual average, has dropped to 0.86, falling below the threshold of 1 and signaling potential undervaluation. CryptoQuant analyst Gaah emphasized that this level often precedes major rallies, noting that in April 2025, a similar reading around $75,000 led to a 50% surge to all-time highs of $112,000 by May.
Complementing this, Bitcoin's MVRV Z-Score has hit a two-year low of 1.13 as of November 22, according to Capriole Investments. This metric, which compares market value to realized value adjusted for volatility, is approaching levels that historically indicate significant undervaluation and local bottoms, such as the end of 2023, which preceded an 80% price rally.
Technically, Bitcoin's price has risen 8.6% from multi-month lows of $80,500, with a bull flag pattern suggesting a short-term recovery. A confirmed breakout above the upper trendline at $87,200 could pave the way for a rally to $96,800, representing a 10.6% increase. The Relative Strength Index (RSI) has improved from oversold conditions to 51, supporting bullish momentum.
However, analysts urge caution. Veteran trader Peter Brandt warned that the recent rebound to $89,000 might be a "dead cat bounce", potentially leading to further declines or a leverage flush below $80,000, highlighting the conflicting signals in the market.
