Bitcoin (BTC) 30-Day MA MVRV Ratio May Be About To Cross Under 365-Day MA

As explained by an analyst in a CryptoQuant Quicktake post, the MVRV Ratio is at risk of going through a death cross.

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Ratio has recently been approaching a death cross formation.

Bitcoin 30-Day MA MVRV Ratio May Be About To Cross Under 365-Day MA

As one analysis in a recent CryptoQuant Quicktake post explains, the MVRV Ratio is close to forming a death cross.

The “MVRV Ratio” is a popular Bitcoin on-chain indicator that essentially tracks how the value currently being held by investors (i.e., the market cap) compares to the value that was put in by them (i.e., the realized cap).

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When the metric’s value is greater than 1, it means that investors are, on average, in a state of net profit right now.

On the other hand, the market being dominated by loss is suggested by the indicator being below this threshold.

Unsurprisingly, the BTC holders are carrying exactly as much value as they initially put in when the MVRV Ratio is precisely equal to 1, indicating that they are just breaking even.

Now, a section of a chart that shows the trend in the Bitcoin MVRV Ratio, along with its 30-day and 90-day moving averages (MAs), over the past few years is shown below:

Back in March, when the cryptocurrency’s price had rallied to a new all-time high (ATH), the Bitcoin MVRV Ratio had surged to very high levels, as can be seen in the graph above.

However, the indicator has decreased as investors have sold and taken profits during the extended consolidation period that has followed. That said, the indicator still shows the investors to be in a comfortable position with a value of 1.88.

What might be worrying, though, is how quickly the MVRV Ratio has decreased. From the chart, it’s clear that the 30-day MA of the metric has dropped sharply and is now testing the 365-day MA once more.

Historically, a bearish phase for the cryptocurrency has typically followed the 30-day MA of the MVRV Ratio crossing below the 365-day MA. Such a death cross last occurred around the end of 2021, foreshadowing the bear market that would follow in 2022.

Currently, the death cross in these MAs of the Bitcoin MVRV Ratio has not yet been confirmed, so this indicator is one to keep an eye on in the near future. In the event that the 30-day MA continues on this trajectory and falls below the 365-day MA, BTC could be entering another bear market.

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But there’s also a chance that the indicator will correct itself, preventing the formation of the death cross.

BTC Price

Yesterday, Bitcoin managed to cross the $61,000 level, but it seems the surge couldn’t be sustained as the asset has already fallen to $59,400.

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