Don't panic, $76k is another solid pullback to the 40% profit line, just like $38k, $49k, and $52k in 2024😏

The MVRV indicator (Market Value to Realized Value) is a commonly used on-chain analysis metric in the cryptocurrency market, used to assess Bitcoin's valuation level and help investors determine whether it is overvalued or undervalued.

MVRV = MV / RV: This ratio is derived by dividing the 'total market value of on-chain chips' by the 'total purchase value of on-chain chips.'

MVRV > 1: The market value is higher than the purchase value, indicating that the current price of Bitcoin is above the average cost for holders, which usually means the market is in a profit state and may be at risk of overvaluation. If the value is too high (such as 3.5 or above historically), it may signal a market top.

MVRV < 1: The market value is lower than the purchase value, indicating that the price of Bitcoin is below the average cost for holders, and holders are generally at a loss, usually suggesting that the market is undervalued and may be nearing a bottom.

In a bull market, MVRV typically rises and reaches a peak, reflecting heightened speculative sentiment. In a bear market, MVRV declines and may even fall below 1, showing market cooling and panic selling.

The MVRV in the chart is a personal modified version, where BTC that has not moved for more than 7 years is considered long-term dormant or lost and excluded from the calculation.