MVRV, an on-chain indicator, represents the ratio between realized and market values. It provides insights into whether the market is overvalued or undervalued.
💡 Historically, during Bitcoin's past cycles, MVRV formed peaks that coincided with market tops. Notably, the peaks in the 2013, 2017, and 2020 cycles aligned with a 🔴 downtrend line.
In March 2024, MVRV peaked at 2.78, slightly below this downtrend line.
Currently, MVRV has recovered to 2.6 following Bitcoin's recent rally. Moreover, the monthly moving average shows a golden cross over the annual moving average, signaling upward momentum.
📌 While it’s impossible to predict with certainty if the downtrend line analysis holds, there might still be room for MVRV to rise toward the 2.9–3.0 range.
Written by Yonsei_dent
