Darkfost
When MVRV score idicates a market bottom
Today MVRV ratio dropped below 1.2 suggesting that BTC is significantly undervalued. Historically, when the MVRV ratio dropped below 1.2, it has always signaled a forming market bottom, presenting a strong buying opportunity. Before this bear market, the most recent occurrence was in 2022, when BTC traded between $21 000 and $16 000, arguably the best DCA zone of the past five years. This is the third time this alert has been triggered during the 2026 bear market. The first was in February, when Bitcoin had just crossed $60 000, and the second was in June - July, when BTC reached $57 000. DCAing at these levels, as we are seeing today, seems reasonable. MVRV (Market Value to Realized Value) measures the ratio between Bitcoin’s market capitalization and its realized capitalization, which values each UTXO at the price when it last moved. A high MVRV can suggest overvaluation, with substantial unrealized profits potentially creating selling pressure. A low MVRV can suggest undervaluation and a potentially attractive buying opportunity. This alert is adjusted over time to account for MVRV’s tendency to decline over the long term. This Cryptoquant preset alert is designed for a mid-term approach, aiming to help investors make more informed decisions.