# Chart of The Week: MVRV Z-Score (Pt. 2) ## Метаданные - **Канал:** glassnode - **YouTube:** https://www.youtube.com/watch?v=jEc0fsa9Z2A ## Содержание ### [0:00](https://www.youtube.com/watch?v=jEc0fsa9Z2A) Segment 1 (00:00 - 05:00) Hey guys, welcome back to Chart of the Week with Glass Node where we run you through some of the most important charts in crypto. Today I wanted to spend some time talking about Bitcoin and specifically we are revisiting the MVRV Zcore. A lot of you were in the comment section asking for an update on this metric because a lot's happened since we last spoke about it back in November. So just to recap what this metric really represents, the orange line is the actual MVRVC Zcore and the MVRV can be seen as a metric of whether the market is overvalued or undervalued by basing uh that measurement on the market cap to realized cap. So the overall market value versus the overall value that's being realized by uh Bitcoin holders. So what really gets this moving is when price is moving incredibly fast. So I would almost call it price velocity. The speed at which price is moving in comparison to the speed at which people are actually taking profits. Okay. So let's just zoom in a little bit so that we're looking at more recent cycles. Here's the 2017 cycle, 21, and the 24 cycle. So, as we can see here, I think most people were expecting the Zcore during the current cycle to spike up into this red zone and have the same kind of readings we saw during prior cycles when the market topped. When we finally reached that very fast moving phase, that euphoria phase that ends up being a crescendo, a crescendo end, and a very obvious end. Price did not do that. It was a very slow grind. Let's actually zoom in a bit more and I'll make it linear just so that you can see how things actually happened. Okay, as we can see, our orange line here actually didn't move um as fast and didn't get as high as price cycles because price was a lot more slow and grindy up and to the right. So, I spoke about that last time. Price velocity was just not quite there to the upside as well as a lot of profits were being realized. There was a lot of selling going on. So you can see that here in our long-term holder net position change. Green long-term holders are net buyers. Red sellers. So the pattern throughout the cycle was that they would sell into strength because they have significant coins to sell. They would sell when there's a lot of money flowing into the market. So they could offload into increasing prices and increasing uh volume. And then they would take advantage of fear and buy when uh at the extremes when people are basically panic selling. they were accumulating. But this changed. I made a video about this uh quite a while back, but essentially this behavior changed when we were in this range over here. So they were net sellers in a range as opposed to selling on the way up. So here they basically bought on the way up and then sold in this range and they essentially sold all the way down. And they have been net sellers basically since late July. So if we look at this metric again, let's zoom in a little more. There we go. You can see since late July they were basically net sellers and that pushed this metric down a lot more profits were being realized at those high prices and they said you know what actually we're not liking this momentum's out of here we're basically going to get out of the market and that has pushed MVRV lower. So market value to realized value decreased a lot of profits were being realized which obviously elevates realized value and um decreases or price naturally follows uh follows the selling and decreases which obviously pushes this metric lower. So we last made a video about this in late November and the reading was basically bouncing around one which could be interpreted as fair value. Since then, price ranged a bit further and we have crashed another time to a low of about 59,000. So what does this mean? It means that we are approaching pretty undervalued metrics, pretty undervalued uh levels of this metric. So the last time the metric was at these kind of prices, we were sitting at about 25 $26,000 back in 2023. So yes, you are seeing a significant discount uh in market value to rel uh realized value. A the relative value of Bitcoin is relatively low at this point in time. So it's a not a bad time to accumulate according to this metric. Obviously not financial advice. So what could we expect? Does this have to spike into green in order for us to bottom? Will it spike into there? There's no guarantee. And the same thing that happened here where we didn't end up spiking into the red, the obvious overvalued point, we may not end up spiking into the green if the market doesn't end up uh going lower. ### [5:00](https://www.youtube.com/watch?v=jEc0fsa9Z2A&t=300s) Segment 2 (05:00 - 05:00) So there's endless possibilities. Maybe we bounce higher, maybe we make a new low later in the year. Um but we are seeing some constructive price action at the minute as well as we are approaching this undervalued band. So, we're actually already below 0. 5. So, things aren't looking too bad, guys. Um, hope you have survived the bare market relatively well. I hope you've been enjoying our videos. If you have been, give us a like, subscribe, share with your friends, and yeah, give us some feedback in the comments. Hope to see you guys next time. Keep well. Cheers. --- *Источник: https://ekstraktznaniy.ru/video/45171*