The MVRV indicator is a metric for assessing whether Bitcoin is undervalued or overvalued. It is calculated by dividing the market value by the realized value.
The current level of the MVRV can provide important insights into the health of the market and possible BTC price movements.
When the MVRV is around 2 to 3 it indicates that the market is relatively healthy and the price of Bitcoin is in line with the value perceived by investors.
This level may suggest stability with less propensity to large price swings.
The impact of the current MVRV level on the price of Bitcoin depends on a number of additional factors, including how investors perceive the current price in relation to the historical post-Halving data.
In addition, global macroeconomic factors can influence the behavior of risk asset investors by triggering trends.
With the MVRV currently at a moderate value, close to the Distribution range, this could indicate that the market is in a neutral phase, with the potential for upward or downward movements depending on other macroeconomic factors and market news
Therefore, the current phase is Neutral with low volatility and a tendency for a big move to follow.
The trend preceding the price is upwards, which indicates a likelihood of following through on the bullish trend by reaching the extreme Distribution range.
Written by G a a h
