The MVRV indicator, which shows the ratio between realized and market value, helps to understand whether the market is overvalued or undervalued.
🔍 Historically, during previous Bitcoin cycles, MVRV reached peaks that coincided with market tops. The peaks of 2013, 2017 and 2020 coincided with the downward trend line.
In March 2024, MVRV reached 2.78, just below this line. MVRV has now recovered to 2.6 after Bitcoin's recent rally.
📈 The monthly moving average shows a "golden cross" above the annual moving average, which indicates an upward trend. Although it is difficult to predict the exact development, the MVRV could still rise to the 2.9-3.0 range.