The exclusive market data concerning Bitcoin’s MVRV Z-Score, highlights key support zones for the top crypto asset. As per the data from Glassnode, the MVRV Z-Score of Bitcoin ($BTC) signifies a crucial support level near $80.1K. The crypto market intelligence platform discussed the current status of Bitcoin’s MVRV Z-Score as well as the potential implications.
Bitcoin Shows Steady Price Movement Near Mean Level $96.3K
Glassnode’s data reveals that the top crypto asset’s Market Value to Realized Value has been steadily moving around $96.3K. The MVRV Z-Score assists in detecting oversold or overbought conditions with the measurement of the deviation of Bitcoin from the historical realized value thereof. The respective metric indicates that Bitcoin’s current status, if it upholds above the respective level, could point toward continued strength.
On the other hand, the analytics provider also discussed another possibility that can occur otherwise. Hence, if the price of Bitcoin breaks below the $96.3K mark, it could move toward the next critical support level. In this respect, -1.5σ is the next prominent support level that denotes the $80.1K mark in terms of price.
The MVRV Z-Score works as a metric that the analytics utilize to measure Bitcoin’s undervalued or overvalued position. For this purpose, Bitcoin’s former price trends are also taken into account. The metric provides the comparison of the difference between realized value and market value while regulating it via standard deviation.
Continuous Bullish Momentum Can Lead to +2σ level at $118.0K, As Historical Data Suggests
As the data points out, +2σ level is the spot where Bitcoin often reaches, underscoring extreme overvaluation as well as likely market tops. This level reportedly denotes a value of up to $118.0K. Nonetheless, the present level is the mean level near $96.3K. It indicates the overall market equilibrium, displaying the alignment of Bitcoin’s price with fair value in line with historical data. However, the -1.5σ level represents the next notable support level if Bitcoin dips below its mean level.
Next Significant Support to Emerge at -1.5σ Level ($80.1K) Before Additional Downturn
According to Glassnode’s data, the price of Bitcoin has presented a resilient stability around the mean level of $96.3K. The bullish continuation of this trend could lead Bitcoin to the +2σ level which occurs at $118.0K. Nonetheless, based on the reluctance of the traders, its price can slump below. In such a case, the -1.5σ level (equaling $80.1K) is a robust support level before additional downturn.
