$BTC — MVRV at 1.1: Approaching Accumulation Zone?
On-chain data is signaling a key structural level.
Bitcoin’s MVRV (Market Value to Realized Value) ratio is currently hovering near 1.1, approaching the historically significant undervaluation threshold.
🔎 What MVRV Indicates
• MVRV > 1 → Average holder is in profit
• MVRV < 1 → Average holder is at a loss
Historically, when MVRV drops below 1, it reflects periods where market participants are under water — often coinciding with late-stage capitulation and long-term accumulation zones.
Several prior cycle lows formed within this range, as selling pressure weakened and strategic buyers gradually accumulated.
📈 Current Position
We are not below 1 yet — but the metric is approaching that area.
If MVRV moves under 1 and stabilizes, it could indicate a transition phase where:
• Weak hands are exhausted
• Long-term conviction strengthens
• Risk-reward dynamics improve structurally
🧠 Perspective
MVRV is not a timing tool — it’s a valuation signal.
The key question:
Is current sentiment fear-driven compression… or early positioning before the next structural expansion?
As always, combine on-chain data with price structure, liquidity, and macro context before making decisions.
#Bitcoin #Crypto #OnChain #MarketStructure #fayzcrypto