🍌 $BTC : the rotten fruit that the market insists on sucking

🤮Would you pay a high price for a spoiled fruit?

That's what many people do with Bitcoin when they ignore indicators like MVRV — it shows whether the $BTC is green, ripe, or already stinking on the bunch.

🔍 How does MVRV work?

Market Value = how much is currently being paid

Realized Value = how much people paid, on average, to buy

Dividing one by the other, we have the MVRV:

MVRV = Market Value ÷ Realized Value

👇🏻Comment below, another indicator you find valuable.

And how to interpret the MVRV value?

Let's imagine that the $BTC is a fruit.

🍏 Green fruit (MVRV < 1):

The current price is below what most paid, the fruit has not yet ripened. Many are at a loss and the market tends to be down – this is where there is a chance to make big profits.

🍎Ripe fruit (MVRV = 1)

The market price is the price that most paid.

🍌 Ripe fruit (MVRV > 1):

The current price is above the average purchase price. The fruit has already ripened, many people are making profits. If the MVRV rises too much, it’s because many are making large profits and the fruit may be overripe – this is when a drop usually occurs or profit-taking happens.

📊 Historically, extreme MVRV values have marked ignored bottoms and euphoric tops. It doesn’t decide for you, but it shouts when the market is deaf. It’s not a crystal ball and shouldn’t be the only indicator used, but it has its value.

👇🏻So, are you still biting into that fruit or have you already spat it out?