MVRV-Z Score shows the clear view of the market sentiment.
What is MVRV?
MV is an abbreviation of Market Value. It's the current Bitcoin(BTC) price multiplied by the number of coins in circulation.
RV is an abbreviation or Realized Value. To calculate RV, sum BTC prices when they were last moved. Then, takes an average of them.
What is Z-Score?
To put it simply, a standard deviation score between MV and RV. If the value is more than 6, they are Z-Scores If the value is less than 0, they are cycle-bottoms Take a look at the above chart. There are 3 up and down cycles. Commonality is when Z-Scores are more than 6, they are cycle-tops and time to sell. As well as, when Z-Scores are less than 0, they are cycle-bottoms and time to buy, stack, accumulate and DCA(Dollar Cost Averaging).
Now, the Z-Score seems like progressing the recovery. But, it may fail before the 4th BTC halving. So, if there are no crypto issues and a next recession before the halving, it would be possible to recovery on and on.
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Amazing idea
Very interesting chart
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Thanks for this update. Never heard of MVRV and Z-score before. You have made me learn its application too. By the way, does it have an API interface for easy monitoring or can I find it on some platform or exchanges like what we have for TA these days?