BITCOIN MVRV SHOWS TOP ISNT IN YET,STILL HAS A LOT MORE ROOM TO GROW.

The Market value to realized value (or MVRV in short) ratio is a Bitcoin indicator that’s defined as the market cap divided by the realized cap.

MVRV Ratio = Market Cap ÷ Realized Cap

The metric’s value tells us whether BTC’s current price is fair or not. If the ratio gets too high, it may mean that the coin is overvalued right now. This may imply there is selling pressure at this point. On the other hand, the price of the coin may be considered undervalued during periods where the MVRV ratio is low. A buying pressure could be present while such values sustain.

Now, here is a chart that shows the trend in the value of this Bitcoin indicator over the past few years

As the above graph shows, during all the previous bull runs, the indicator’s value has shown sharp spikes near the top.

As very high values suggest Bitcoin is overvalued and that a correction could come soon, the MVRV ratio may be used to spot tops. Similarly, low values may be considered good buying opportunities. Looking at the chart, the indicator’s value now seems be lower than what was seen during the early 2021 rally (and also during the 2017 bull run). So this may imply that despite BTC declining in the past few days, the top may not be in yet. And the crypto could still have more room to grow.

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