The MVRV-Z Score is a tried and tested bottom indicator, but it is not back at base yet, one analyst warns.
1724 Total views
17 Total shares
Bitcoin (BTC) needs to go lower before putting in a macro bottom, one of the market’s most accurate indicators shows.
Data from sources including on-chain analytics firm Glassnode shows Bitcoin’s MVRV-Z Score is almost — but not quite — signaling a price reversal.
MVRV-Z Score inches towards macro bottom
Amid ongoing debate whether if, or when, BTC/USD will go beyond its current macro lows of $17,600, new figures suggest that the market easily has further to fall.
As noted by Filbfilb, co-founder of trading suite Decentrader, the MVRV-Z score is now in its classic green zone, but not yet at the point which has accompanied price bottoms in the past.
MVRV-Z measures how high or low the Bitcoin spot price is relative to what is referred to as its “fair value.”
It uses market cap and realized price data along with standard deviation to create what has turned out to be one of the most efficient Bitcoin top and bottom prediction tools.
MVRV-Z has caught every macro top and bottom on BTC/USD in its history, and done so with an accuracy of two weeks, data resource LookIntoBitcoin notes.
The metric has only gone below its green zone a handful of times, the last being in March 2020, but more downside pressure would deliver a repeat performance.
“This chart is *the one* for me,” Filbfilb commented about the latest readings.
“We normally bottom when MC
Bitcoin MVRV-Z Score chart. Source: Glassnode
$16,000 bottom zone gains traction
$15,600 would tie in with various existing predictions of where Bitcoin is due to bottom.
Related: Bitcoin will see ‘long bear market’ says trader with BTC price stuck at $19K
In an update to Twitter followers at the weekend, meanwhile, popular account CryptoBullet included that area as one of several important support zones to watch.
$16,000, it confirmed, also marks the average deviation from Bitcoin’s 50-month moving average.
— CryptoBullet (@CryptoBullet1) July 2, 2022
Bitcoin’s relative strength index, or RSI, is already at its lowest ever, another indication of the oversold nature of a market now below its previous halving cycle’s peak of nearly $20,000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Behind the Bogdanoff meme: Looking at the lives of the twins whose looks were used for the famous “Pomp Eet” and “domp eet” memes. 361 Total views 20 Total shares Raise a glass today to the twin characters behind the famous “pomp eet” cryptocurrency meme. The French television presenters died within one week of each…
Liquity Protocol, which provides interest-free borrowing on the Ethereum network, plans to expand its ecosystem and hire more resources following the latest funding round. 1540 Total views 9 Total shares DeFi lending platform Liquity Protocol has secured $6 million in Series A funding to expand its on-chain borrowing services, underscoring the continued growth of cryptocurrency…
From comparing the project to Apple and Ethereum to bringing up network outages, the community reacted to the new Web3 phone by Solana. 332 Total views 23 Total shares The Solana (SOL) team has brought mobile phones to Web3 after revealing Saga, Solana’s Android mobile device that will go out with the project’s latest stack…
The Indian government is working on a national blockchain strategy in order to expand the technology’s adoption in the country. As the India Times reported on Nov. 27, India’s Ministry of Electronics and Information Technology (MeitY) said that it recognizes the potential of blockchain technology and the need for the development of a shared infrastructure to…
The move follows the US Office of the Comptroller of the Currency ceasing examinations for reputational risk. The US Federal Deposit Insurance Corporation, an independent agency of the federal government, is reportedly moving to stop using the “reputational risk” category as a way to supervise banks. According to a letter sent by the agency’s acting
There are more than 5,000 diverse cryptocurrencies being traded with a total market cap of nearly $250 billion. As much as 95% of those cryptos are nothing but scams, according to the creator of the world’s first proof-of-work, or PoW, crypto.Emin Gun Sirer, the creator of the first PoW-based crypto, the Karma System, is confident…
Turkish are losing faith in its local fiat currency, with confidence in the lira falling 20% this year. Rampant inflation is affecting Turkish residents’ confidence in the lira fiat currency. According to a Reuters report on August 14, locals are dumping lira and converting it to dollars and buying gold. Even with market interventions and reassuring…
Australians are increasingly adding cryptocurrency to their “self-managed super funds” as a means to secure their retirement life, according to newly released data. Australians are increasingly looking to cryptocurrency to secure a peachy retirement, with allocation to the asset class from self-managed retirement funds increasing 400% in just four years — with the growth rate
