CryptoQuant, a cryptocurrency analysis platform, stated that Bitcoin is approaching a critical level on its MVRV Z-Score indicator, but the current picture does not yet confirm the start of a new bull market. According to the analysis, the MVRV Z-Score is approaching its 365-day moving average, which has stood out as a significant regime change level in past market cycles.
CryptoQuant added that in the past, a sustained breakout above the 365-day moving average on the MVRV Z-Score signaled a market transition from a recovery phase to an expansion phase. It was noted that the breakout in 2015-2016 preceded the 2017 bull market, the 2020 move preceded the 2020-2021 rise, and the 2023 recovery coincided with the final expansion period.
Bitcoin’s MVRV Z-Score Remains Below Average
However, the indicator is still below the 365-day moving average. According to CryptoQuant, if Bitcoin breaks above this level and maintains its position, it could indicate a resurgence of unrealized profits across the network and the start of a new expansion regime. A rejection from this level, on the other hand, could mean that overall market profitability is not yet strong enough to support a broader bull run.
