BlockBeats News, August 15th, CryptoQuant analyst Axel Adler Jr. wrote that the current Bitcoin trading price is at the lowest range of the Rainbow Chart model - the "basically a fire sale price." This is considered an extreme discount compared to the long-term model price trajectory. It is not just about how much Bitcoin has dropped. The Rainbow Chart model compares Bitcoin's current price to its long-term trajectory, so this difference reflects the extent to which the market has deviated from historical trends.

The volatility-adjusted Z-Score is currently at -2.293 - the lowest reading since 2016, and lower than the -1.979 at the 2022 bear market bottom. This indicator takes into account the differences in volatility in different market cycles. Therefore, this comparison indicates that the current downward deviation from the model has exceeded that of the previous bear market bottom.

Bitcoin is currently in an extremely discounted range, with the volatility-adjusted Z-Score hitting a 10-year low. This demonstrates the degree of undervaluation within the model but does not confirm the ultimate bottom. The extreme undervaluation points to a potentially attractive range, but a market reversal still needs separate confirmation.

Note: The Z-Score is a commonly used standardization indicator in statistics to measure how far a data point is from the mean in terms of "standard deviations."