Bitcoin’s MVRV Ratio Nears Key Level—Will This Trigger a Major Reversal?

Samuel Edyme

3 months ago

3 mins read

Bitcoin’s MVRV Ratio Nears Key Level—Will This Trigger a Major Reversal?

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin’s price has been experiencing a gradual recovery on a micro level, showing a 1% increase over the past 24 hours, bringing it back above $83,000. However, when viewed from a broader perspective, Bitcoin remains in a bearish trend, down 9.3% in the past week and 24.7% from its all-time high (ATH) in January.

This extended downtrend has raised concerns about whether the market is undergoing a deeper correction or if a potential reversal is on the horizon.

Possibility Of A Deeper Correction in Bitcoin

Analysts seem to have been closely monitoring Bitcoin’s market-value-to-realized-value (MVRV) ratio, which serves as a key indicator of whether Bitcoin is overvalued or undervalued based on historical price trends.

CryptoQuant analyst Crypto Dan recently provided insights into Bitcoin’s current market position, noting that the proportion of BTC holdings under one month surged in both March and December 2024, reaching 23% and 24.5%, respectively. This trend mirrors past movements that preceded price corrections.

With Bitcoin’s MVRV ratio now at 1.8, close to the 2024 correction low of 1.71, historical patterns suggest that a deeper decline to the $70,000 range could push the metric to similar levels seen in previous market bottoms.

Market in an Oversold Zone After a Strong Correction

“Even without an additional sharp decline, the market has already been sufficiently lightened, making it a favorable zone for a potential upward move without the need for further significant drops.” – By @DanCoinInvestor pic.twitter.com/mjLOQWlj4U

— CryptoQuant.com (@cryptoquant_com) March 13, 2025

Key Indicators Suggest a Potential Rebound

Despite the bearish sentiment, Crypto Dan emphasized that market conditions may already be near a turning point. He noted that altcoins have surrendered most of their recent gains, leaving many investors without profits in this cycle.

This indicates that the market has already undergone significant deleveraging, reducing the likelihood of further sharp declines. If no major sell-offs occur, Bitcoin could enter a favorable zone for an upward move, even without a drastic drop to the $70,000 range.

Dan also pointed out that the market is now in the final phase of its upward cycle, undergoing a strong correction that increases both risk and investment difficulty. However, as the market approaches an oversold state, the probability of a rebound also increases.

Dan highlighted that several key factors will determine whether this rebound materializes, including the strength and magnitude of the price recovery, whale activity, and changes in on-chain metrics during the rebound as well as Bitcoin’s correlation with the stock market and broader economic trends.

While the short-term outlook remains uncertain, Dan noted:

Despite the current stagnation, most cryptocurrencies, including Bitcoin, are in an oversold state, suggesting that a rebound is not far off. However, it is still too early to definitively conclude that the market has entered a full-fledged bear cycle.

Bitcoin (BTC) price chart on TradingView — BTC price is moving downwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.