Do. Apr 18th, 2024

• Bitcoin’s price has been stalling in the past couple of weeks with no significant jumps.
• The Bitcoin MVRV Ratio has recently fallen to levels not seen since 2019.
• Historically, when the MVRV Ratio has been low like this, the previous bottom of a bear market has been reached.

The world of cryptocurrency has been somewhat stagnant in the past few weeks, with the price of Bitcoin (BTC) not making any significant jumps. This has caused speculation amongst investors about whether or not the digital asset is headed for a new bottom. In an attempt to answer this question, analysts have been looking at the Bitcoin MVRV Ratio, which compares the market capitalization of BTC to its realized value.

Recently, the CEO of on-chain data analysis firm Cryptoquant shared a chart that showed the Bitcoin MVRV Ratio has fallen to levels not seen since 2019 – three years ago. The lower the value falls, the more undervalued BTC is, and when the MVRV Ratio has been this low in the past, it has been a sign that the market had reached its bottom.

During a bear market, the price of BTC declines drastically over a period of time, and when the MVRV Ratio dips to the levels seen in the chart, it has been followed by a big surge in prices. This was the case in 2015, and again in 2019, when the bull market was triggered a couple of months after the MVRV Ratio had hit its bottom.

This could be a sign that the price of Bitcoin is now ready to make a big jump, and if history repeats itself, the digital asset could soon enter a new bull market. Of course, this is only speculation at this point and it’s impossible to know for sure what will happen. Nevertheless, it’s definitely worth keeping an eye on the Bitcoin MVRV Ratio in the coming weeks to see if it could be announcing a bottom signal.

Von admin