Analyst: Bitcoin MVRV Falls Below 365-Day Moving Average, Possibly Signaling Entry into "Cyclical Bottom Phase"

BlockBeats News, October 22, CryptoQuant analyst ShayanMarkets stated that Bitcoin's Market Value to Realized Value ratio (MVRV) has recently fallen below its 365-day moving average, a signal that has historically appeared multiple times before the market forms cyclical bottoms.

The analyst pointed out that the current MVRV ratio is about 1.9, slightly below its 365-day Simple Moving Average (SMA). According to historical data, each time the MVRV fell below the 365-day SMA, Bitcoin's price experienced a significant rebound: a 135% increase in mid-2021, a 100% increase in June 2022, and a 196% increase at the beginning of 2024.

ShayanMarkets believes that this pattern indicates Bitcoin may once again be entering an undervalued range, during which long-term holders typically start to re-accumulate. If history repeats itself, Bitcoin's price is expected to reach the $115,000 to $190,000 range during the late stage of the bull market.