📊 On-Chain Signals: MVRV Z-Score Shows the Market Is Still Not Too Hot
The chart displays Bitcoin MVRV Z-Score — an indicator that compares market value to actual value. Historically, this indicator helps determine peaks and troughs in BTC cycles.
🔵 Current Reading: approximately 2
– Still far from the "overheated zone" (>7)
– Historically, cycle peaks occur when MVRV exceeds 7–9
– Most recent peak (2021): MVRV > 8, BTC at $64K–69K
🟢 Trough Occurs When MVRV Drops Below 0
– In 2011, 2015, 2018, and 2022
– Each major accumulation zone marked
🧠 What This Means Now:
– $BTC has recovered, but we are not yet in a state of euphoria
– Low risk of overheating, higher potential for price increase
– If history repeats, we may be entering the mid-stage of a major uptrend
💡 Key Takeaway:
BTC is likely in the middle of a cycle. Smart money has flowed in, but investor euphoria has not yet appeared.