Bitcoin's Market Value Ratio Suggests Potential Bottom Formation

According to PANews, CryptoQuant analyst ShayanMarkets has highlighted that Bitcoin's market value to realized value (MVRV) ratio, an indicator of whether the asset is overvalued, has recently fallen below its 365-day moving average. This suggests that the Bitcoin market may be forming a 'cyclical bottom.' In a report released on Monday, the analyst noted, 'The MVRV ratio is currently near 1.9, slightly below its 365-day moving average. Historically, each time this ratio falls below the 365-day simple moving average (SMA), it signals a buying opportunity and a local bottom.' This pattern was last observed in mid-2021, June 2022, and early 2024, after which Bitcoin prices rose by 135%, 100%, and 196%, respectively. This ongoing trend indicates that Bitcoin is once again entering an 'undervalued phase, where long-term holders typically begin to accumulate.' If history repeats itself, Bitcoin prices may embark on a long-term recovery, with analysts predicting a short-term target price of approximately $115,000, potentially reaching as high as $190,000 if the final phase of the bull market begins.