Alphractal: Bitcoin Approaching Critical Resistance on MVRV Z-Score!

The MVRV Z-Score is approaching a test of an important trend line - which could become a major resistance for Bitcoin price.

The main question:

Will this barrier cap Bitcoin's next peak, or will MVRV break higher as it has in previous cycles, pushing the price even further?

What is MVRV Z-Score?

It measures the deviation between Bitcoin's market value and its realized value - in other words, whether BTC is overvalued or undervalued compared to its average purchase price.

High Z-Score: Risk of Overvaluation and Potential Correction

Low Z-Score: Possibility of accumulation in value zones

This metric plays a critical role in identifying market extremes, offering valuable clues about what might happen next for the Bitcoin price.

Be on guard: the next move may determine the course of the current cycle.