We still haven’t reached the absolute bottom of the next cycle.

First, let me explain what MVRV is. It reflects the relationship between the average buy-in cost of everyone across the entire network. What does the green zone represent? It means the coin’s price has already fallen below everyone’s holding cost—everyone across the whole network is selling to cut losses and taking losses. Historical evidence shows that selling pressure will only truly be exhausted when the white line drops into the green area below—that is, the historical absolute “iron bottom.”

In 2012, 2015, 2019, 2020 3/12, the end of 2022… every time BTC truly hits a historical major bottom, MVRV will, without exception, plunge into the green zone or even drop below 0.

Right now, the white line is still trending downward, but it hasn’t truly entered the green buy-the-dip area yet. Although the market is currently in a pullback, it still hasn’t triggered the iron-bottom signal of the entire network giving up and cutting losses at a loss. There’s still room for sentiment and price to dip further and grind out the bottom.