TechFlow reports that on June 29, CryptoQuant analyst Darkfost pointed out that the Bitcoin S2F regression model is gradually approaching historical extreme undervaluation zones. This model is used to measure the deviation of market price relative to S2F fair value, thereby identifying significant overvaluation or undervaluation phases.
According to historical patterns, when the S2F regression indicator is greater than 2.5–3, the market usually enters an extreme overvaluation zone and is often accompanied by a short-term trend reversal; when the indicator is less than 1, it usually corresponds to the bottom formation phase and the eve of a trend reversal. Currently, the indicator is around 1.1, indicating the market is approaching the "extreme undervaluation" zone. Darkfost believes that this signal is consistent with multiple other indicators, suggesting the market may be at a critical watershed, or there may still be a final round of "capitulation drop" to complete the bottoming phase.
