COINOTAG reported on December 23rd that the Market Value to Realized Value (MVRV) ratio offers significant insights into Bitcoin’s current market positioning. Despite BTC reaching an all-time high last week, the latest CoinGlass data reveals that it remains undervalued, with the MVRV-Z score declining to 2.84 from the previous peak of 3.3. A score under 3.7 historically suggests that an asset could be undervalued and presents potential buying opportunities for investors. The MVRV-Z score functions as a vital indicator by contrasting the market value against its realized value, ultimately providing a clearer picture of market sentiment. In past instances, such as during significant corrections, Bitcoin exhibited an MVRV score of 3.03 in March and soared to a score of 7 in January 2021, implying that the current score may foreshadow a robust recovery for BTC in the upcoming weeks.
Source: https://en.coinotag.com/breakingnews/bitcoin-btc-undervalued-despite-all-time-high-analyzing-mvrv-z-score-for-potential-recovery/