This Bitcoin Indicator Might Suggest Bull Run Is Still On
July 23 2021 - 3:00PM
NEWSBTC
The MVRV ratio, a Bitcoin indicator, might suggest that the current
bull run isn’t over, and the price of the crypto is yet to peak.
The MVRV Ratio Indicates The Cycle Isn’t Over Yet As pointed out by
a Crypto Quant post, past cycles seem to follow a specific pattern
on the MVRV charts. This might suggest that the current bull run
hasn’t peaked yet. MVRV stands for “Market Value to Realized
Value”. The ratio is defined as Bitcoin’s market capitalization
divided by realized capitalization. Related Reading | SpaceX Has
Bitcoin On Its Balance Sheet, Elon Musk MVRV Ratio = Market Cap ÷
Realized Cap The MVRV ratio is useful for knowing whether the
current price is fair or not. If the value is very high, it means
Bitcoin’s price might be overvalued, and thus investors would tend
to have selling pressure. On the other hand, if the value of the
indicator is low, it might suggest that the price of BTC is
undervalued, which could result in buying pressure in the market.
Related Reading | Bitcoin Volume Continues To See Yearly Lows As
Price Struggles To Recover Now, here is how the Bitcoin MVRV ratio
chart looks like for the 2013 cycle: The BTC MVRV zones seem to
decide bottom and top In the above chart, the blue zone indicates a
bottom. The MVRV ratio line only touches this zone during a bear
market, while the red box signifies a top. In the middle is another
box with the color green. The MVRV ratio seems to touch this zone
once after reaching a top in the middle of the bull run, only to go
back up again for the true top. Because of this, when the MVRV
ratio touches the green zone after a correction, buying Bitcoin
might be a good choice. Below is the chart that shows the 2017
cycle as well as the current run. BTC MVRV shows current cycle may
not have reached the top yet As is clear from the chart, the 2017
cycle also seemed to have followed a similar pattern where a top
happened mid-cycle and then a correction brought it into a green
zone. From the looks of it, the current cycle might just be in the
middle right now, and a new top might be ahead. Bitcoin Price At
the time of writing, BTC’s price is around $k, down % in the last 7
days. Here is a chart showing the trend in the crypto’s price:
BTC's price seems to be back on a uptrend | Source: TradngView If
the pattern of the MVRV ratio holds true, the bull run may not have
reached a top in this run yet. So that the price might be heading
up soon. However, this cycle could end up being different
nonetheless, and a bear market might be ahead instead. Featured
image from Pexels.com, charts from CryptoQuant, TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024