The #MVRV (Market Value to Realized Value) metric is crucial for #Bitcoin on-chain analysis due to its ability to gauge market sentiment, long-term holder behavior, and market cycle dynamics.
By comparing current market cap to the aggregate value of coins based on their last transaction price, MVRV helps identify potential overvaluation or undervaluation periods. It distinguishes between short-term and long-term holders, indicating profit-taking or accumulation phases.
This metric offers valuable insights for investors and analysts seeking to understand Bitcoin's market dynamics, identify potential entry or exit points, and navigate through different stages of the market cycle with greater precision.
Or simply hodl, is less complicated…