Bitcoin MVRV Dead Cross raises concerns about downforce

CryptoQuant's latest data shows abnormal fluctuations in Bitcoin's market value to realized value ratio (MVRV), while CryptoFant's data further confirms a rare potential bearish signal in the Bitcoin market. Crypto analyst Yonsei Dent pointed out that the death crossover of Bitcoin MVRV indicators has caused market downside risks.

According to Yonsei's analysis, the 30-day moving average (DMA) on early March fell below the 365-day moving average (DMA), forming a bearish death cross, indicating that the short-term momentum has weakened and the downward pressure has increased. The MVRV ratio is currently close to its long-term historical average, with market prices in the MVRV multiple range of 10 to 15 times, usually appearing at the bottom of the market.

Historical data shows that this death crossover has appeared at the bottom of the market in 2011, 2015 and 2019. For example, in March 2011, after the 50-day moving average fell below the 200-day moving average, the price of Bitcoin fell further and eventually fell to nearly $1. Similar situations also occurred in December 2015 and March 2019.

Yonsei pointed out that in the past, this indicator has often been accompanied by price consolidation, so it is necessary to pay close attention to the coming weeks. The current MVRV ratio is about 10-15 times, usually at the bottom of the market, suggesting that Bitcoin may be close to an undervalued level. Although there is no clear bottom signal, the MVRV ratio is quite accurate in predicting the bottom of the market. Therefore, we need to pay close attention to market dynamic changes. All in all, the 30-day moving average fell below the 365-day moving average, which is not common in a strong bull market, but historical data shows that this has also occurred at the bottom of the market before.

The above is the detailed content of Bitcoin MVRV Dead Cross raises concerns about downforce. For more information, please follow other related articles on the PHP Chinese website!