Bitcoin’s MVRV Z-Score Approaches Bear Market Bottom Indicator
- Bitcoin’s market value-to-realized value (MVRV) Z-Score is currently at 0.24, nearing the historical “green zone” threshold.
- Previous bear market bottoms occurred when the Z-Score dipped below zero in years such as 2011-2012, 2014, and late 2018.
- Long-Term Holder MVRV (LTH-MVRV) is at 1.29, indicating long-term holders still have unrealized profits.
- Short-Term Holder MVRV (STH-MVRV) stands at a lower level of 0.84, showing potential for further selling pressure.
- The recent selloff led to a loss of approximately $390 billion in the crypto market value.
The current MVRV Z-Score indicates that Bitcoin is close to a historically significant accumulation zone, which has previously marked bear market bottoms. However, the divergence between Long-Term and Short-Term Holder MVRVs suggests that additional selling may be needed before confirming a bottom.
As conditions evolve post-selloff, Bitcoin’s metrics show it is near critical levels for potential recovery, with LTH-MVRV at an elevated level of 1.29 compared to STH-MVRV at just below one.
