đ° Bitcoinâs MVRV historical percentile has fallen below 30% again, and currently stands at 25.7%. Analyst Darkfost believes that after a wave of capitulation selling, the market has entered another transitional accumulation phase.
đĽ This isnât simply looking at âmarket cap divided by realized cap.â Instead, it compares the current MVRV with its historical distribution. In other words, itâs not asking whether Bitcoin is expensive or cheap, but where its current valuation sits relative to the past.
đĄ At 25.7%, Bitcoin is in a range it has occupied for only about 25% of its history. To be honest, this range isnât common and does show some characteristics of an accumulation zone.
However, it has already moved out of the âextreme undervaluationâ zone typically associated with market bottoms, so this canât be taken as confirmation of a bottom. It may simply mean that the most intense selling has passed, but the market still needs time to absorb the supplyâand this transitional phase could be volatile.
đ¤ Would you treat MVRV falling to 25.7% as a signal to build a position gradually, or wait for it to re-enter the extreme undervaluation zone before making a move?
#ćŻçšĺ¸ #BTC #MVRV #OnChainData
đĽ This isnât simply looking at âmarket cap divided by realized cap.â Instead, it compares the current MVRV with its historical distribution. In other words, itâs not asking whether Bitcoin is expensive or cheap, but where its current valuation sits relative to the past.
đĄ At 25.7%, Bitcoin is in a range it has occupied for only about 25% of its history. To be honest, this range isnât common and does show some characteristics of an accumulation zone.
However, it has already moved out of the âextreme undervaluationâ zone typically associated with market bottoms, so this canât be taken as confirmation of a bottom. It may simply mean that the most intense selling has passed, but the market still needs time to absorb the supplyâand this transitional phase could be volatile.
đ¤ Would you treat MVRV falling to 25.7% as a signal to build a position gradually, or wait for it to re-enter the extreme undervaluation zone before making a move?
#ćŻçšĺ¸ #BTC #MVRV #OnChainData