Bitcoin's market value-to-realized value (MVRV) Z-Score, a key on-chain metric, is approaching levels that have historically marked the end of bear markets. Currently at 0.24, the Z-Score is nearing the 'green zone,' which begins at approximately 0 and has previously indicated market bottoms in 2011-2012, 2014, late 2018, and 2022.
Despite this, the convergence of Long-Term Holder MVRV (LTH-MVRV) and Short-Term Holder MVRV (STH-MVRV) has not yet occurred, suggesting further selling may be needed before a definitive market bottom is reached. Currently, STH-MVRV is at 0.84, while LTH-MVRV is at 1.29, indicating long-term holders still have significant unrealized profits. This divergence suggests that while conditions for recovery are emerging, the market may not have reached its absolute bottom yet.
Bitcoin's MVRV Z-Score Nears Historical Bear Market Bottom
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