🚀 What is the #MVRV-Z Score in Bitcoin?

The MVRV-Z Score is an advanced metric that compares the Market Value of Bitcoin (current price x total amount of BTC) with the Realized Value (considering the price at which each BTC was last moved).

🔎 How does it work?

Market Value = current price of BTC x total supply.

Realized Value = sum of the BTC values based on the last price at which each was moved.

💡 The Z Score adjusts this by considering the average and the standard deviation, making it easier to identify market top and bottom zones.

📈 Interpretation of values:

Above 6.9 ➡️ Market overvalued (potential top).

Below 0.1 ➡️ Market undervalued (potential bottom).

🔔 Why is it important?

The MVRV-Z Score helps identify periods when Bitcoin may be overheated (risk of correction) or undervalued (buying opportunity).

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