#Bitcoin : Monitoring the MVRV ratio can help anticipate potential market moves.

MVRV 90d

An increase in the ratio might signal a good time to take profits, while a decrease could indicate a buying opportunity.


MVRV Ratio:


The red line represents the market capitalization ratio to realized capitalization.


πŸ‘‰ Neutral Zone: When the MVRV ratio is around 1, Bitcoin is fairly valued based on the average acquisition price of all coins in circulation.


πŸ“ˆ Overvalued Zone: A higher MVRV ratio suggests that Bitcoin might be overvalued, and holders are likely in profit, which could lead to increased selling pressure.


πŸ“‰ Undervalued Zone: A lower MVRV ratio indicates that Bitcoin might be undervalued, suggesting a good buying opportunity as the market value is below the realized value.

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