MVRV is an important indicator that measures the relationship between Bitcoin's capitalization and its realized capitalization. To calculate the MVRV for this cohort of UTXOs, we take the total volume held of UTXOs between 1 day and 3 months old and divide it by their average value, also known as the realized price.

We will look at UTXOs created within 1 day - 3 months and determine their MVRV by dividing the total volume they hold by their average purchase price (realized price).

The intersection of level 1 has the meaning:

If MVRV rises and crosses level 1, it is considered a sideways signal, indicating a favorable time to consider long positions or increase your assets.

On the contrary, if the MVRV trend changes down and crosses the 1 level down, it can be taken as a bearish signal, indicating caution and strategies that match the bearish mood of the market.

Now, the MVRV for the cohort of swing traders has recently crossed Level 1 to the upside, which can be interpreted as a sideways signal, possibly indicating the possibility of a gradual increase in a long position or a strengthening of an existing one.

A few days ago, when Bitcoin reached $28,500 during the rally, it coincided with the realized price of that particular UTXO cohort. Recently, however, the price of Bitcoin has experienced a slight decline.

This decline has left cohort owners in a favorable position as their holdings are now slightly below their average purchase price, suggesting a positive signal and minimal unrealized losses.

This situation has fostered a sense of security and confidence among these owners as they are effectively breaking even. Accordingly, there is no significant fear or uncertainty in this cohort, which contributes to a more positive and confident attitude.