MVRV Signals Bitcoin Could Spike Higher
Bitcoin’s MVRV score (~2) sits in neutral—not a top or a bottom zone—suggesting ample upside ahead.What the Zones MeanWhere Are We Now?Why It Matters for Investors
- MVRV‐Z around 2 indicates neither overvalued nor undervalued
- Historically, tops appear when MVRV hits 7+ (red zone)
- Bottoms occur when MVRV drops below 0 (blue region)
The Bitcoin MVRV ratio compares the Market Value (current price × supply) to Realized Value (price when coins last moved). The MVRV‑Z score refines this by showing how far the market value is from its historical mean in standard deviations. It helps investors assess when Bitcoin is overvalued or undervalued relative to historical trends.
What the Zones Mean
- Blue or green zone (MVRV Z < 0): Indicates Bitcoin is undervalued and historically aligns with market bottoms, such as in 2018 and 2022.
- Neutral zone (~0 to ~2): Reflects a fairly valued market. Price action here suggests consolidation or early-stage uptrends.
- Red zone (MVRV Z > 7): Signals extreme overvaluation. Previous cycle tops in 2017 and 2021 coincided with MVRV Z soaring into this range.
Where Are We Now?
Bitcoin’s current MVRV‑Z score is slightly above 2, placing it comfortably in the neutral territory. This is far from the red zone, implying Bitcoin is not currently overbought. Historically, strong rallies have followed when MVRV climbed from this level toward higher peaks, often pushing BTC to new all-time highs before peaking near or above 7.
This positioning supports the view that Bitcoin’s market has room to grow, and we may be mid-way through a bull cycle rather than near its end.
Why It Matters for Investors
- Not Overheated: MVRV data shows Bitcoin is still not in the danger zone.
- Bullish Implications: With the score in a neutral range, the market could climb further without overheating.
- Cycle Monitoring: Investors can use MVRV trends to anticipate potential market tops before they occur.
Read also:
- SharpLink Soars After $30M Ethereum Buy
- Sky Price Prediction 2026: Is April the Peak Month at $0.214? Qubetics Presale Nears Completion With 516M Coins Sold
- Tether Becomes No.2 Shareholder in Juventus Football
- Banks Can Serve Crypto, Says Fed Chair Powell
- Aurora Mobile Puts BTC, ETH, SOL & SUI in Treasury Mix
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BlackRock Now Holds Over 2 Million ETH Through Its ETF
Salesforce CEO rejects claims that AI will end white-collar jobs
Share link:In this post: Marc Benioff says AI will enhance, not eliminate, white-collar jobs. Salesforce paused hiring in some roles to fully integrate AI productivity. Over 50% of new Salesforce roles were filled through internal reskilling.
Trump’s 30% Tariff threat stuns Mexico despite months of cooperation
Share link:In this post: Even after months of working with the United States, Mexico was surprised by Trump’s 30% tariff threat. Mexican leaders say they are fighting drug cartels and passing new laws but feel their efforts are not being recognized. Experts say the tariff may not do much damage but it still worried investors and made stock markets fall.
BOE Governor Bailey openly disagrees with Trump admin’s backing of stablecoins
Share link:In this post: BOE Governor Andrew Bailey warned banks against issuing their own stablecoins, citing risks to financial stability. Bailey prefers tokenized bank deposits over stablecoins as a safer form of digital money. The Trump administration supports stablecoin issuance, potentially setting up a regulatory clash with the UK.
Trending news
MoreCrypto prices
More
