Analyst: Bitcoin MVRV Falls Below 365-Day Moving Average, Signaling Potential Entry into a 'Periodic Bottom Phase'

On October 22nd, the CryptoQuant analyst ShayanMarkets stated that the ratio of the market value to the realized value of Bitcoin (MVRV) recently dropped below its 365-day moving average. This is a signal that has historically appeared multiple times before the market forms a cyclical bottom. The analyst pointed out that the current MVRV ratio is approximately 1.9, which is slightly lower than its 365-day simple moving average (SMA). Looking at historical data, each time the MVRV fell below the 365-day SMA, the Bitcoin price witnessed a significant rebound: a 135% increase in mid-2021, a 100% increase in June 2022, and a 196% increase in early 2024. ShayanMarkets believes that this pattern indicates that Bitcoin may once again enter the undervalued range, where long-term holders typically start to accumulate again. If history repeats itself, the Bitcoin price is expected to reach the range of $115,000 to $190,000 towards the end of the bull market.