ShayanMarkets
The MVRV metric signifies a bull market!
The following graph provides an excellent picture of the last four Bitcoin price cycles, including the 2017-2018 and 2019-2023 bull and bear markets. It contains the Bitcoin price alongside the MVRV metric, which implies the ratio of the coins Market Cap to its Realized Cap, indicating whether the price is overvalued. Historically, the metric falls to the green zone during the bearish market phases, signifying that Bitcoin is trading at the under-valued section and the cycle’s bottom is forming. However, as the chart evidently shows, each time the MVRV metric spiked above 1, Bitcoin experienced a surge, and the bull market started. Bitcoin’s recent impulsive rally has resulted in a sharp increase in the MVRV metric. Hence, the market might have entered a bullish mid-term stage, followed by sudden moves and high volatility.