Analyst: Bitcoin MVRV Percentile Drops Below 30, Still Aligns with Accumulation Zone Characteristics

BlockBeats News, October 18 – Crypto analyst Darkfost stated in a post that after Bitcoin faced resistance near $87,000, the MVRV percentile has dropped below 30 again, entering the transitional phase following market capitulation. He believes the current valuation still aligns with the characteristics of the accumulation zone. Darkfost explained that MVRV is used to compare Bitcoin's market value with its realized value, the latter being calculated based on the price at which each BTC last moved on-chain. His method does not solely rely on observing the raw MVRV value but rather measures the current value's relative position in its historical evolution. This approach aims to reduce the impact of Bitcoin's structural changes and market cycles on the interpretation of the metric, placing it within the context of the current market environment. He pointed out that Bitcoin has historically only been at this valuation level for approximately 25% of the time. While it has now exited the extreme undervaluation zone that has consistently coincided with market bottoms in the past, it still aligns with the characteristics of historical accumulation zones. [Original Link]