A crucial bitcoin market indicator is signaling that the worst of the crypto crash might be over The metric shows bitcoin’s market price is getting close to its realized fair value after the recent sell-off.
What to know: – Bitcoin’s MVRV Z-Score is nearing the historical bear-market bottom around zero. – The metric shows that bitcoin’s market price is approaching its realized fair value after the recent sell-off. – Past cycles in 2014, 2018, and 2022 saw major recoveries begin once the Z-Score entered this green accumulation zone
After a massive selloff last week, one of bitcoin’s The metric is called the market value-to-realized value (MVRV) Z-Score. Every major bitcoin cycle bottom has coincided with the Z-Score touching or briefly dipping below zero (into the green zone, in the chart). And right now, it is knocking on the door of the zone that has coincided with the lowest point of previous bear markets.
It happened in 2011-2012 when bitcoin saw its first major crash. It happened again in 2014 and late 2018. Most recently, it fell below zero in the second half of 2022, marking a price bottom that paved the way for a three-year bull run.