Bitcoin's market value to realized value (MVRV) ratio has dipped below its 365-day moving average, potentially indicating a cyclical bottom, according to CryptoQuant analyst ShayanMarkets. The MVRV ratio, currently near 1.9, has historically signaled buy opportunities and local bottoms when falling below this average. Previous instances in mid-2021, June 2022, and early 2024 saw subsequent Bitcoin price increases of 135%, 100%, and 196%, respectively.
This trend suggests Bitcoin may be entering a phase of undervaluation, prompting long-term holders to accumulate. If the pattern holds, Bitcoin's price could see a significant recovery, with short-term targets around $115,000 and potential highs of $190,000 if a bull market phase ensues.
Bitcoin's MVRV Ratio Signals Potential Cyclical Bottom
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