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.
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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.
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 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