{"id":639559,"date":"2024-09-04T09:30:46","date_gmt":"2024-09-04T09:30:46","guid":{"rendered":"https:\/\/ktsl888.com\/?p=639559"},"modified":"2024-09-04T05:24:58","modified_gmt":"2024-09-04T05:24:58","slug":"bitcoin-investors-beware-mvrv-bear-market","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/bitcoin-news\/bitcoin-investors-beware-mvrv-bear-market\/","title":{"rendered":"Bitcoin Investors Beware: MVRV Has Given Bear Market Signal"},"content":{"rendered":"

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Z-Score is currently giving a bearish signal for the BTC market.<\/p>\n

Bitcoin MVRV Z-Score Has Seen A Bearish Crossover Recently<\/h2>\n

In a new post<\/a> on X, CryptoQuant author Axel Adler Jr has discussed the latest trend in the Bitcoin MVRV Z-Score. The MVRV Z-Score<\/a> refers to an indicator that keeps track of the difference between the BTC market cap and realized cap, divided by the standard deviation of the market cap.<\/p>\n

The market cap here is naturally just the simple total valuation of the cryptocurrency at the current spot price. The realized cap<\/a>, however, is an on-chain model that calculates the coin’s capitalization differently.<\/p>\n

Related Reading: \u2018Paper\u2019 Bitcoin On The Decline: What It Means For BTC<\/a><\/div>\n

Instead of taking the current price as the same value for all coins in circulation, it uses the last price at which each coin moved on the blockchain as its value.<\/p>\n

Since the last time any coin was transferred was likely the last time it changed hands, the price at its time would denote its current cost basis. Thus, the realized cap is a sum of the cost basis of all circulating tokens.<\/p>\n

One way to view this sum is as a measure of the investors’ capital into the cryptocurrency. As the MVRV Z-Score compares the market cap, which is nothing but the amount of capital the investors are holding right now, against this initial investment, it tells us about the investor profitability.<\/p>\n

Below is the chart shared by the analyst that shows the trend in the 30-day and 365-day moving averages (MAs) of this Bitcoin indicator over the last few years.<\/p>\n

\"Bitcoin
The two lines appear to have crossed in recent days | Source: @AxelAdlerJr on X<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the 30-day MA of the Bitcoin MVRV Z-Score has been down in recent months, suggesting investor profitability has decreased.<\/p>\n

With the latest continuation of the decline, this MA has crossed below the 365-day MA, suggesting the MVRV Z-Score’s average value in the past month has been lower than that for the past year.<\/p>\n

In the chart, the CryptoQuant author highlights some zones for the indicator based on the pattern in these two lines. Historically, the 30-day MA sinking below the 365-day has signaled a bearish phase for Bitcoin (colored in light red).<\/p>\n

Interestingly, such a bear market signal had also appeared in January 2020, after the market had been cooling down from the 2019 rally. This bearish period was followed by another venture into the bull territory (light green), but the unexpected COVID-19 crash<\/a> reset the market once more before the bull market kicked off for real.<\/p>\n

Related Reading: Bitcoin, XRP See Declining Whale Activity: What It Means<\/a><\/div>\n

While it’s possible the latest bear market signal in the MVRV Z-Score could suggest a transition away from a bull market for Bitcoin in the current cycle, it could very well instead go the way the market did in January 2020, with this crossover serving as a healthy reset for a proper bull rally.<\/p>\n

BTC Price<\/h2>\n

At the time of writing, Bitcoin is trading at around $57,700, down more than 6% over the past week.<\/p>\n

\"Bitcoin
The price trend over the last few days | Source: BTCUSD on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Z-Score is currently giving a bearish signal for the BTC market. Bitcoin MVRV Z-Score Has Seen A Bearish Crossover Recently In a new post on X, CryptoQuant author Axel Adler Jr has discussed the latest trend in the Bitcoin MVRV Z-Score. The MVRV Z-Score refers to an indicator that keeps track of the difference between the BTC market cap and realized cap, divided by the standard deviation of the market cap. The market cap here is naturally just the simple total valuation of the cryptocurrency at the current spot price. The realized cap, however, is an on-chain model that calculates the coin’s capitalization differently. Related Reading: \u2018Paper\u2019 Bitcoin On The Decline: What It Means For BTC Instead of taking the current price as the same value for all coins in circulation, it uses the last price at which each coin moved on the blockchain as its value. Since the last time any coin was transferred was likely the last time it changed hands, the price at its time would denote its current cost basis. Thus, the realized cap is a sum of the cost basis of all circulating tokens. One way to view this sum is as a measure of the investors’ capital into the cryptocurrency. As the MVRV Z-Score compares the market cap, which is nothing but the amount of capital the investors are holding right now, against this initial investment, it tells us about the investor profitability. Below is the chart shared by the analyst that shows the trend in the 30-day and 365-day moving averages (MAs) of this Bitcoin indicator over the last few years. As displayed in the above graph, the 30-day MA of the Bitcoin MVRV Z-Score has been down in recent months, suggesting investor profitability has decreased. With the latest continuation of the decline, this MA has crossed below the 365-day MA, suggesting the MVRV Z-Score’s average value in the past month has been lower than that for the past year. In the chart, the CryptoQuant author highlights some zones for the indicator based on the pattern in these two lines. Historically, the 30-day MA sinking below the 365-day has signaled a bearish phase for Bitcoin (colored in light red). Interestingly, such a bear market signal had also appeared in January 2020, after the market had been cooling down from the 2019 rally. This bearish period was followed by another venture into the bull territory (light green), but the unexpected COVID-19 crash reset the market once more before the bull market kicked off for real. Related Reading: Bitcoin, XRP See Declining Whale Activity: What It Means While it’s possible the latest bear market signal in the MVRV Z-Score could suggest a transition away from a bull market for Bitcoin in the current cycle, it could very well instead go the way the market did in January 2020, with this crossover serving as a healthy reset for a proper bull rally. BTC Price At the time of writing, Bitcoin is trading at around $57,700, down more than 6% over the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":639563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,7104,461,86686,92999,1119,1144],"class_list":["post-639559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-bear-market","tag-bitcoin-bearish","tag-bitcoin-mvrv-ratio","tag-bitcoin-mvrv-z-score","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\nBitcoin Investors Beware: MVRV Has Given Bear Market Signal<\/title>\n<meta name=\"description\" content=\"On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Z-Score is currently giving a bearish signal for the BTC market.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/ktsl888.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin Investors Beware: MVRV Has Given Bear Market Signal","url":"http:\/\/ktsl888.com\/bitcoin-news\/bitcoin-investors-beware-mvrv-bear-market\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/ktsl888.com\/bitcoin-news\/bitcoin-investors-beware-mvrv-bear-market\/"},"thumbnailUrl":"https:\/\/ktsl888.com\/wp-content\/uploads\/2024\/09\/btc_5f762f.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/ktsl888.com\/wp-content\/uploads\/2024\/09\/btc_5f762f.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/ktsl888.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin bear market","bitcoin bearish","bitcoin mvrv ratio","bitcoin mvrv z-score","btc","btcusd"],"dateCreated":"2024-09-04T09:30:46Z","datePublished":"2024-09-04T09:30:46Z","dateModified":"2024-09-04T09:30:46Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin Investors Beware: MVRV Has Given Bear Market Signal\",\"url\":\"http:\\\/\\\/ktsl888.com\\\/bitcoin-news\\\/bitcoin-investors-beware-mvrv-bear-market\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/ktsl888.com\\\/bitcoin-news\\\/bitcoin-investors-beware-mvrv-bear-market\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/ktsl888.com\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/btc_5f762f.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/ktsl888.com\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/btc_5f762f.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/ktsl888.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin bear market\",\"bitcoin bearish\",\"bitcoin mvrv ratio\",\"bitcoin mvrv z-score\",\"btc\",\"btcusd\"],\"dateCreated\":\"2024-09-04T09:30:46Z\",\"datePublished\":\"2024-09-04T09:30:46Z\",\"dateModified\":\"2024-09-04T09:30:46Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/ktsl888.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/ktsl888.com\/wp-content\/uploads\/2024\/09\/btc_5f762f.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/posts\/639559"}],"collection":[{"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/comments?post=639559"}],"version-history":[{"count":0,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/posts\/639559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/media\/639563"}],"wp:attachment":[{"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/media?parent=639559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/categories?post=639559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ktsl888.com\/wp-json\/wp\/v2\/tags?post=639559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}