This Bitcoin Indicator Might Suggest Bull Run Is Still On

The MVRV ratio, a Bitcoin indicator, might suggest that the current bull run isn’t over, and the price of the crypto is yet to peak. The MVRV Ratio Indicates The Cycle Isn’t Over Yet As pointed out by a Crypto Quant post, past cycles seem to follow a specific pattern on the MVRV charts. This might suggest that the current bull run hasn’t peaked yet. MVRV stands for “Market Value to Realized Value”. The ratio is defined as Bitcoin’s market capitalization divided by realized capitalization. Related Reading | SpaceX Has Bitcoin On Its Balance Sheet, Elon Musk MVRV Ratio = Market Cap ÷ Realized Cap The MVRV ratio is useful for knowing whether the current price is fair or not. If the value is very high, it means Bitcoin’s price might be overvalued, and thus investors would tend to have selling pressure. On the other hand, if the value of the indicator is low, it might suggest that the price of BTC is undervalued, which could result in buying pressure in the market. Related Reading | Bitcoin Volume Continues To See Yearly Lows As Price Struggles To Recover Now, here is how the Bitcoin MVRV ratio chart looks like for the 2013 cycle: The BTC MVRV zones seem to decide bottom and top In the above chart, the blue zone indicates a bottom. The MVRV ratio line only touches this zone during a bear market, while the red box signifies a top. In the middle is another box with the color gr...