• Bitcoin investors may be entering a historic accumulation phase, according to Messari CEO Ryan Selkis.
• Market Value to Realized Value (MVRV) indicator implies that investors are in the early stages of a long-term accumulation phase.
• If the MVRV is over 3, it is time to sell Bitcoin immediately, and if it is below 1, it is time to begin collecting Bitcoin.
Bitcoin is currently in a historic accumulation phase, according to the founder and CEO of the cryptocurrency intelligence service Messari, Ryan Selkis. In an interview with the financial journal Barron’s, Selkis commented that on-chain signals are now indicating a buy signal for Bitcoin (BTC). He further explained that the Market Value to Realized Value (MVRV) indicator implies that investors are in the early stages of a long-term accumulation phase.
The MVRV is a metric that may be used to determine whether or not a cryptocurrency is currently overpriced. The MVRV-Z Score is applied to the „fair value“ of a cryptocurrency, which is calculated by subtracting its market cap from its realized cap. The score then determines whether or not the cryptocurrency is now overpriced or undervalued. As Selkis noted, if the MVRV is over 3, it is time to sell Bitcoin immediately, and if it is below 1, it is time to begin collecting Bitcoin. This applies to the whole history of Bitcoin.
The MVRV indicator is just one of the on-chain signals that investors use to determine the current market sentiment. Other indicators, such as the Miner’s Position Index and the Difficulty Ribbon, have also been used to predict the future price of Bitcoin. The Miner’s Position Index measures the balance of power between miners and investors and can be used to determine if miners are accumulating or selling their coins. The Difficulty Ribbon, on the other hand, measures the rate of Bitcoin’s mining difficulty and can be used to predict when the next price rally is likely to occur.
Given the current on-chain signals, it appears that Bitcoin investors may be in the early stages of a historic accumulation phase. This could potentially be the first step in a long and successful bull run for the cryptocurrency. However, investors should always remember to do their own research and never invest more than they can afford to lose.