Bitcoin MVRV, an essential metric to understanding whether Bitcoin (BTC) is overbought or oversold at current prices, shows that we are getting closer to this cycle top. Meanwhile, the Bitcoin (BTC) community is still cautious after the BTC price’s last plunge.
Bitcoin (BTC) MVRV says cycle top is near: Chart by CryptoQuant CEO
The Bitcoin (BTC) Market Value/Realized Value metric (365-day moving average) approaches levels that usually signal a cycle top. Such a chart was shared by Ki Young Ju, CEO and founder of analytical platform CryptoQuant.
#Bitcoin Market Cycle pic.twitter.com/bM23h2NJ8c
— Ki Young Ju (@ki_young_ju) February 14, 2025
In 2014-2018, this indicator peaked at about 3 while, in 2021, the level of 2.5 was enough to mark the cycle’s top. In all previous cycles, the 365-day MA of MVRV bottomed at around 1.
MVRV relies on two key metrics for the Bitcoin (BTC) audience: market capitalization and realized capitalization. Market capitalization is determined by multiplying the current market price of a cryptocurrency by its circulating supply. On the other hand, realized capitalization considers the aggregate value of all coins based on the price at which they were last transacted, as explained by CryptoQuant.
As such, it is a derivative of how comfortable current price levels are for Bitcoin (BTC) holders compared to the time they last bought or sold the digital gold.
In raw data, levels below 1 should be treated as the Bitcoin (BTC) price bottom, while levels over 3.7 hint at reaching the top.
Bitcoin (BTC) sentiment back to neutral zone
As of press time, Bitcoin (BTC) is changing hands at $96,918, up 1.16% in the last 24 hours. Bitcoin (BTC) is recovering after its third consecutive failure to hold above $100,000.
Bitcoin (BTC) sentiment managed to escape thr “Fear” zone and is back to “Neutral.” Right now, it is sitting at 48/100, Alternative data says.
The net capitalization of the cryptocurrency market is up by 0. 1% and reached $3,358 trillion in equivalent on falling trading volume.
