Capriole Investments founder Charles Edwards has been observing Bitcoin’s on-chain activity and metrics which can often provide signals for major market moves.
On Oct. 18, he tweeted a chart that depicts the MVRV z-score which uses blockchain analysis to identify periods where Bitcoin is extremely over or undervalued relative to its “fair value.”
MVRV Predicts Incoming Bullish Run
The metric was created by Murad Mahmudov and David Puell by dividing the market capitalization by the realized capitalization for getting a sense of when prices are below “fair value.” The z-score is a standard deviation test that pulls out the extremes in the data between market value and realized value.
Historically every time MVRV z-score reclaimed 3.0, #Bitcoin went on a parabolic price run for the next 1-2 months.
Bitcoin just reclaimed 3.0 pic.twitter.com/luCBnubYIs
— Charles Edwards (@caprioleio) October 18, 2021
The last time the MVRV z-score crossed 3 was in late 2020, just before BTC b
We współpracy z: https://cryptopotato.com/bullish-on-chain-signal-previously-preceding-parabolic-bitcoin-runs-flashes/
