G a a h2024-02-05

MVRV reaches 2-year high

The last time MVRV was quoted close to the 2.00 value (yellow line), the Bitcoin price was trading above the $50,000 range in December 2021. As the value in MVRV with MA30d increases, this means that the market capitalization exceeds the realized capitalization, resulting in increased selling pressure. Historically the region we are in signaled a local top before the start of a strong bull market taking BTC prices to a new All Time High and the MVRV up to the Distribution range (red line). After the recent top at $49,000 the price has corrected by around -20%. Will this selling pressure be enough to take MVRV once again into the Accumulation range (green line), as it did in 2019-2020? However, the Halving event due to take place in less than 3 months is a strong positive catalyst for the market. In addition, historically speaking, the event was the starting point for a new bull market.