MVRV Z-Score: Overview 13. 04. 2024
📚 Let's take another look at MVRV Z-Score:
▫️ I cyclically return to one of my favorite indicators, which is the MVRV Z-Score for #Bitcoin.
▫️ I do not treat it as a definitive indicator, but I like to sometimes look at how the price behaved in the past.
***
▫️ As we can see, we have had similar situations in the past. In similar price ranges (change of reference point), we could observe rebounds in the price of $BTC. This is healthy for such a dynamic upward movement.
▫️ Generally, corrections and rebounds in the market are not uncommon. They will definitely appear sooner or later, and for the crypto market, drops of 20-30% are not unusual.
▫️ Classically, as with many other elements, the exception here is the year 2019/2020, where due to the situation in the world - the price drastically plummeted.
***
▫️ In my opinion, we can now see a relatively short period of further declines or sideways movement. After that, I expect large increases towards the "red zone".
▫️ For me, this will be a signal to sell practically all positions.
▫️ Nevertheless, I still believe that we have plenty of room for growth.
❗️ Remember, history does not have to repeat itself, and what I have written here is only my thoughts and a kind of speculation.
🔗 Chart link: https://www.lookintobitcoin.com/charts/mvrv-zscore/
📚 Let's take another look at MVRV Z-Score:
▫️ I cyclically return to one of my favorite indicators, which is the MVRV Z-Score for #Bitcoin.
▫️ I do not treat it as a definitive indicator, but I like to sometimes look at how the price behaved in the past.
***
▫️ As we can see, we have had similar situations in the past. In similar price ranges (change of reference point), we could observe rebounds in the price of $BTC. This is healthy for such a dynamic upward movement.
▫️ Generally, corrections and rebounds in the market are not uncommon. They will definitely appear sooner or later, and for the crypto market, drops of 20-30% are not unusual.
▫️ Classically, as with many other elements, the exception here is the year 2019/2020, where due to the situation in the world - the price drastically plummeted.
***
▫️ In my opinion, we can now see a relatively short period of further declines or sideways movement. After that, I expect large increases towards the "red zone".
▫️ For me, this will be a signal to sell practically all positions.
▫️ Nevertheless, I still believe that we have plenty of room for growth.
❗️ Remember, history does not have to repeat itself, and what I have written here is only my thoughts and a kind of speculation.
🔗 Chart link: https://www.lookintobitcoin.com/charts/mvrv-zscore/
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I am following an indicator called CBBI, which synthesizes 9 indicators (https://colintalkscrypto.com/cbbi/):
I am following an indicator called CBBI, which synthesizes 9 indicators (https://colintalkscrypto.com/cbbi/):
Machine translated
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