18:00 ▪
3
min reading ▪ acc
The price of Bitcoin (BTC) is currently trading just below $64,000. However, the technical indicator suggests that the flagship cryptocurrency could still have considerable room for improvement.
MVRV Z-score Reveals Bitcoin’s Bullish Potential
The MVRV z-score, which compares Bitcoin’s market value to its realized value, is a reliable indicator for identifying peaks and troughs in the BTC cycle. Currently at 1.87, it shows that Bitcoin still has growth potential.
Historically, during previous market highs, MVRV’s Z-Score has typically exceeded 6, even reaching 10.4 in December 2017. In October 2021, when Bitcoin peaked at $69,000, the score was 3.66, albeit below levels seen during previous peaks.
Conversely, an MVRV Z-score below zero often signals an attractive buying opportunity. It reached a low of -0.36 in November 2022, which represents a great opportunity to enter the market.
Changing market sentiment
The “Fear and Greed” indicator currently shows the “Greed” level at 71, reflecting increasing investor optimism following the recent recovery in Bitcoin prices. However, caution should be exercised as BTC remains in a downtrend. Investors should carefully monitor the development of technical and fundamental indicators before making a decision.
Bitcoin’s growing adoption and regulatory developments, such as spot ETF approvals in the United States and Hong Kong, could also positively impact the price in the medium term. Growing interest from institutional and retail investors in this alternative asset class could support demand and prices.
Although Bitcoin is still trading below its all-time highs, MVRV’s Z-score suggests bullish potential. However, investors should remain alert to the downtrend and adjust their strategies accordingly. A cautious and diversified approach remains essential in this volatile market.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
