Despite Bitcoin’s impressive rally over the past year, MVRV levels have not risen above 3.2, which is considered the threshold for over-exuberance, according to Glassnode data.
Above this level, a situation commonly referred to as “excessive euphoria” occurs in the market. However, in the current cycle, this threshold has not yet been crossed.
It is stated that if the MVRV breaks the 3.2 level, the Bitcoin price should reach around $132,000. According to Glassnode’s analysis, this price level represents the level needed for the market to enter a state of extreme euphoria.
Despite Bitcoin having made a big rally last year, this level of “euphoria” has not yet been seen. This is interpreted as the rally in the market may not be complete yet and may have further upside potential.
However, it is emphasized that the market needs to gain strong momentum and investor confidence to reach high levels such as $132,000. Bitcoin's future movements may be shaped by both institutional interest and macroeconomic factors.
Stay tuned