Bitcoin (BTC) has strengthened by more than 40% since early 2023. Meanwhile, analysis platform Glassnode sees a signal that Bitcoin will be bullish through the Z-score Market Value to Realized Value (MVRV) indicator approach.

How to Read the MVRV-Z Score Ratio
MVRV stands for Market Value and Realized Value where Market Value reflects the value of crypto assets on the market and Realized Value is the original value.

The development of this metric is the MVRV Z-Score, which is used to detect whether a crypto asset is too “expensive” or “cheap” compared to its “fair” value. This is a deeper development of the MVRV metric.

This metric is one of the metrics that is easy to understand because when the chart approaches the red area, it means that a crypto asset is at a price that is too expensive and when it is in the blue area the price is too low.

Historically, when the MVRV Z-Score was in the green area, it signaled a period of the Bitcoin price bottom. Conversely, when the indicator was in the red area, it signaled an impending peak and overbought period in the BTC market.

Currently, the MVRV has broken out of the buying area, which has corresponded with the accumulation of the BTC price in the past.

On February 13, 2023, MVRV has left the undervalued zone. BTC price broke the long-term logarithmic resistance line (red line).

The MVRV Z-Score is also heading for a retest of the oversold area (blue line). Reporting from Beincrypto, the occurrence of these two events simultaneously, provides a strong signal for the start of a bull market.