A Bitcoin entity adjusted dormancy flow ratio below 250,000 historically indicates undervaluation and potential for an upcoming rally, while a return above 250,000 after a dip often signals a major bull run.
"Historically, when this ratio falls below about 250,000, aka the green zone, it often signals a market bottom, meaning Bitcoin is undervalued relative to dormant coin activity, and could rally soon. When it climbs back above 250,000 after a dip, it has often signaled a major bull run."