ShayanMarkets
Bitcoin’s MVRV Ratio Slips Below 365-Day Average, Cyclical Bottom Forming?
The Bitcoin MVRV Ratio (Market Value to Realized Value) currently stands near 1.9, slightly below its 365-day moving average. Historically, each time the ratio dropped below the 365 SMA, it has marked a buying opportunity and local bottom signal, as seen during mid-2021, June 2022, and early 2024. This consistent pattern indicates that the market is once again entering an undervaluation phase, where long-term holders historically begin accumulating. The MVRV Ratio’s positioning below its long-term average reflects reduced speculative excess and growing long-term confidence, aligning with the technical reaction from the institutional demand zone. If this metric begins to turn upward from current levels, it could confirm that the recent sell-off was a cyclical bottom formation, supporting a renewed bullish phase into Q4.