The MVRV Z-score chart is one of the strongest on-chain metrics to determine whether Bitcoin is undervalued, fairly valued, or overvalued. This is a particularly suitable indicator for newcomers because it directly reflects the overall market's profit and loss.
✨When the Z-score rises to high levels (highlighted in green) → the market has too much profit → risk of a peak.
✨When the Z-score falls to a low range near 0 or negative → the market is undervalued → low risk, high opportunity.
📊 Looking at the current chart:
✨MVRV Z-score is significantly lower than historical peaks in 2013 – 2017 – 2021.
✨This shows that the market has not yet entered a bubble zone, although the current BTC price is relatively high.
✨Previous hot rallies were accompanied by a Z-score exceeding 6–8. Currently, we are not in that range, which means Bitcoin is not too “hot”.
➡️ Bitcoin is no longer cheap, but it is not yet expensive to the point of danger.
🧠 Meaning for newcomers
✨Not a long-term peak → The market still has room to rise if capital flows back strongly.
✨But it is also not the bottom → Not suitable for all-in.
✨This phase is suitable for:
✨Light DCA
✨Hold stable and wait for the corrections
✨Prioritize BTC/ETH instead of risky altcoins
✨Newcomers should understand: peaks only occur when the whole market is “too profitable” - and currently, it is not in that state.
🎯 4. Overview of the market
✨The market is in an accumulation phase – transitioning.
✨No bubble signals yet, but sentiment is gradually weakening → easily subject to strong fluctuations based on news.
✨If the MVRV Z-score rises sharply to the 4–6 range → it may signal an upcoming hot rally.
✨Conversely, if it falls close to 0 → a golden opportunity for newcomers.
🛑 THIS ARTICLE IS NOT INVESTMENT ADVICE, PLEASE REFER AND STAY CALM IN THE MARKET. 😘
