Since May 2022, the MVRV index with 30-day MA has dropped below 1.44 (green line), indicating an accumulation phase for Bitcoin.
History shows that these times are good opportunities to buy BTC long term.
MVRV is defined as total market capitalization divided by total realized capitalization. Simple but very powerful to understand the value of Bitcoin, whether the price is right or not.
The accumulation phase lasts longer than the distribution phase, and during the 2015-2016 bear market, the accumulation phase was the longest in Bitcoin history based on the MVRV index.
The current accumulation phase, lasting over 500 days, is the second longest bear market in BTC history. Good opportunity to reach like 2015-2016? Most likely based on historical data.
When MVRV decreases, the total realized capitalization is greater than the total market capitalization, which means selling pressure is decreasing.
Therefore, during periods of MVRV below 1.44, the risk/return from selling to the market becomes increasingly less favorable, while the risk/reward from buying the market becomes increasingly favorable.
History shows that these times are good opportunities to buy BTC long term.
MVRV is defined as total market capitalization divided by total realized capitalization. Simple but very powerful to understand the value of Bitcoin, whether the price is right or not.
The accumulation phase lasts longer than the distribution phase, and during the 2015-2016 bear market, the accumulation phase was the longest in Bitcoin history based on the MVRV index.
The current accumulation phase, lasting over 500 days, is the second longest bear market in BTC history. Good opportunity to reach like 2015-2016? Most likely based on historical data.
When MVRV decreases, the total realized capitalization is greater than the total market capitalization, which means selling pressure is decreasing.
Therefore, during periods of MVRV below 1.44, the risk/return from selling to the market becomes increasingly less favorable, while the risk/reward from buying the market becomes increasingly favorable.