The MVRV index represents the ratio between Market Value and Actual Value, indicating whether or not the market is currently overvalued. Applying monthly and yearly moving averages to the MVRV index makes it easier to understand its dynamics. For example, when the 30-day moving average crosses the 365-day moving average with a steep slope, creating a dead cross, the market typically turns into a bear market.

During the 2015-2018 and 2019-2022 cycles, when the 365-day moving average peaked, prices also peaked. Currently, no dead cross is seen in the MVRV dynamics, and the 365-day moving average continues to trend up. The current MVRV is 2.13, which shows that the market as a whole is at +113% unrealized gains, suggesting it is still early to see loss or downside fears.

Considering that the top of the 365-day moving average in previous cycles has formed around 2.7, and the 365-day moving average is currently at 1.9, there may still be potential for further growth.