The Market Value to Realized Value (MVRV) ratio of Bitcoin has now moved past the SMA365 line, which means that the market is in another bullish phase. According to the CryptoQuant report, this indicator describes overvalue and undervalue levels in Bitcoin compared to previous performance and the current situation, which may signal a rally.
Bitcoin's MVRV Metric is Flashing Bullish Signals Again!“MVRV once again pricing above its SMA365 is a strong bullish signal. With the bulls reclaiming market dominance, #Bitcoin has tested the $66,000 level.” – By @burak_kesmeci Link https://t.co/sToPJ7vcvn pic.twitter.com/0YpPg2AfvT
— CryptoQuant.com (@cryptoquant_com) September 27, 2024
MVRV Crosses Key Threshold
MVRV ratio measures the market capitalization ratio to the realized value of Bitcoin: the times that MVRV crosses above SMA365, often preceding a price uptrend. Professional analysts pay close attention to this critical movement since it often signals the onset of a bullish trend. Bitcoin MVRV has risen to 2.04 after its local low at 1.71, above the SMA365 level of 2.02. In the past, such a crossing has resulted in substantial price increases, so people pay close attention to this in crypto markets.
As Burak Kesmeci, a popular analyst, said:
“When we examine the historical relationship between the MVRV and its 365-day moving average (SMA365), we encounter a striking result. Following MVRV’s pricing above its SMA365, we often witness bulls stepping into the spotlight for Bitcoin.”
BTC’s price has tested the $66,000 level along with MVRV’s bullish trend. This price movement shows that the bulls are leading the market, which adds to the growing speculation that Bitcoin may continue to rise.
Market Sentiment
The positive change in market sentiment occurred when institutional interest in the giant token remained strong, and the overall trends became more bullish. The MVRV and SMA365 cross, combined with the continued inflows into the BTC ETF, could signal more price appreciation in the near term.With Bitcoin still trading at around $66,000, investors, traders and stakeholders are waiting to see if this bullish trend will continue. Before targeting and placing their bets on the next few weeks, expectations are already up to possibly aim for more new records highs.
