I've noticed something interesting while looking at Bitcoin's historical data in recent days. Do you know the MVRV Z-Score? It's this indicator that measures the ratio between the market value and the realized value of the network. Well, according to the analyses I've seen, when this indicator drops below 0, especially around -0.20, that's usually when Bitcoin hits its lows.



The interesting thing is that in this current cycle, the MVRV Z-Score has never really reached these extreme levels. The lowest point we've seen was around +0.26. So technically, this classic green zone hasn't been tested yet. If you look at previous cycles, the MVRV Z-Score always entered negative territory at some point.

That's where it gets interesting for traders. If the MVRV Z-Score finally turns negative, it could really signal a long-term opportunity with a good risk-reward ratio. But for now, we're still waiting for that classic signal.
BTC-0.95%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments