The data on the series shows that the market value of Bitcoin to the value of the achieved value (MVRV) rises, but is still outside this extremist area.
Bitcoin MvRV ratio to date to bypass the SD +1 line
In the latest weekly report, the Analysis Company on the series Glass I talked about how Bitcoin is currently looking at the MVRV ratio. “MVRV” is a common indicator that briefly tells us about how to compare the value that investors as a whole keep with their initial investments.
When the value of this scale is greater than 1, this means that my holders carry more than they put it. In other words, it is in a clear profit. On the other hand, the indicator under the threshold indicates that the total underwater network.
Analysis Company used the MVRV ratio to determine the pricing ranges that are compatible with severe deviations from the average profitability of the investor (i.e. the medium value of the MVRV ratio). These teams help refer to the periods where the investor profits/losses are unusually high.
Below is the graph that Glassnode shares in the report that shows the trend in these pricing teams for Bitcoin over the past few years.
As shown in the graph, the price of bitcoin has been circulated above the average level of this model now. Recently, the original was also broken over the normative +0.5 (SD) line.
This line is compatible with the price in which the MVRV ratio reaches 0.5 standard deviations higher than the average ever. Nowadays, the level is about 100200 dollars.
The level that BTC has not yet exceeded in this last gathering is +1 SD, and it is located at $ 11,400. From the graph, it is clear that breaking the cryptocurrency above this line generally led to the top of its price.
The interpretation behind this pattern is the fact that the profits of the largest investor grow, and the more the seduction of the seduction to take it. In extreme deviations in the MVRV ratio, the pressure on those who surrender to this seduction becomes large, and therefore the reason is that the original approaches the long -term top.
In the current cycle, Bitcoin has violated the +1 SD level of the model on two occasions, ends with the March 2024 and DECEMBER 2024 formations. Currently, the current assembly is still lower than this level, but above +0.5 SD that also corresponds to a large level of gains.
“This indicates that the market is relatively heated, but it can be said that it still has a room for more expansion before the unintended profit by investors reaches a severe level higher than +1σ,” explains the analysis company.
BTC price
Bitcoin witnessed some decline during the past day, as its price decreased to 105,900 dollars.
