I noticed that quite a few people are asking how to use the MVRV Z-Score to read the market. It's a pretty interesting indicator honestly.

The logic is simple: the MVRV Z-Score measures the ratio between market value and realized value. When this indicator rises, it can indicate that the market is overexcited, and when it falls, it's often the moment when investors panic.

On the chart, you usually see a yellow line oscillating between a red zone and a green zone. When it enters the red zone, historically it has corresponded to market tops or times when people really needed to be cautious. The green zone is the opposite — it's when prices are attractive and accumulations become interesting.

What’s cool about the MVRV Z-Score is that it has already correctly marked several cycles. The current chart shows that we are in a rather constructive phase of the market. Personally, I’ve talked about specific price levels lately, but well, we all know that timing at these levels is never obvious.

The thing is, Bitcoin oscillates between short-term and long-term trading phases. The MVRV Z-Score just helps us better understand where we are in the cycle. It’s one tool among others, not a crystal ball. But honestly, it’s useful for long-term strategies.