Bitcoin price is currently trading just below the $64,000 level, according to CoinGecko data.
Bitcoin price is currently trading just below the $64,000 level, according to CoinGecko data.
According to the latest data, the MVRV Z-score currently stands at 1.87, meaning there is still room for a further rally.
This indicator compares the market value with the realized value. The realized limit calculates the last price at which each coin moved on the network. When the market value is substantially higher than the realized value, it could indicate that Bitcoin is approaching the top of its current cycle.
Notably, virtually all previous market highs had an MVRV Z score greater than 6. For example, it peaked at 10.4 in December 2017.
It is worth noting that the score actually peaked at 3.66 in October 2021, when the flagship cryptocurrency peaked just above the $69,000 level. However, it peaked above 7 in February. of 2021.
On the contrary, when the MVRV Z-Score falls below zero, it means there could be a relatively attractive buying opportunity. For example, it bottomed at -0.36 in November 2022.
While not foolproof, this indicator has historically been useful in identifying when the largest cryptocurrency was approaching cyclical lows and highs.
“Greed” returns to the market
The “Fear and Greed” indicator currently it’s found at 71, with the market returning to “greed” mode following the recent Bitcoin price rebound.
However, this sentiment could be premature as Bitcoin is still in the midst of a broader downtrend, according to the Ichimoku Cloud indicator.
