The chart illustrates Bitcoin's MVRV (Market Value to Realized Value) momentum and its transitions from bullish to bearish phases. These transitions often occur when the MVRV ratio falls below its 1-year Simple Moving Average (SMA). The current chart shows that this shift happened as Bitcoin's price dropped below $61,500, indicating that a significant portion of Bitcoin was purchased above this level and is now in a loss, potentially leading to widespread distribution of BTC.
