BTC’s MVRV Ratio Breaching 1.5 Will Signal Bullish Drive: Report

  • The analysis states BTC’s MVRV Ratio has proven to be an exceptional indicator of market trends.
  • BTC’s MVRV Ratio reaching 1.5 will reportedly signal a bullish continuation for BTC.

The crypto intelligence firm CryptoQuant (@cryptoquant_com) tweeted their latest analysis of Bitcoin’s MVRV Ratio this morning. According to the tweet, the MVRV ratio for Bitcoin (BTC) is a metric that divides the current market capitalization for BTC by the realized capitalization.

In the introduction of their analysis, CryptoQaunt shared that the MVRV has proven to be an exceptional indicator of market trends over the course of the last three halvings.

The analysis added that the MVRV ratio is also helpful in detecting market trends, stating that a positive motive for selling will arise if the market capitalization grows faster than the realized capitalization. This will also result in the MVRV Ratio increasing.

Conversely, the realized market capitalization outpacing the market capitalization will result in the MVRV Ratio decreasing – indicating a potential decline in selling pressure, according to the analysis.

CryptoQuant highlighted that BTC’s MVRV Ratio rebounded from the COVID crisis in April 2020, and climbed above 1 to reach a high of 3.75 in the weeks that followed. It was at this point that BTC’s price printed its latest all-time high.

BTC’s MVRV Ratio then declined to 0.75 in November 2022 following the aftermath of the Terra Classic, Three Arrows Capital, Celsius Network, and FTX collapses.

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