Analyst: The Bitcoin MVRV ratio has recently fallen below the 365-day moving average, which may indicate a cyclical bottom

ChainCatcher news, CryptoQuant analyst Shayan Markets stated that the market value to realized value ratio (MVRV) of Bitcoin is an indicator of whether the asset is overvalued. This indicator recently fell below its 365-day moving average, suggesting that the Bitcoin market may be forming a "cyclical bottom."

The analyst mentioned in a report on Monday: "The MVRV ratio is currently close to 1.9, slightly below its 365-day moving average. Historically, every time this ratio falls below the 365-day simple moving average (SMA), it marks the arrival of a buying opportunity and a local bottom signal." The last time this occurred was in mid-2021, June 2022, and early 2024, after which Bitcoin prices rose by 135%, 100%, and 196% respectively. This persistent pattern indicates that Bitcoin has once again "entered an undervalued phase, where long-term holders typically begin to accumulate." If history repeats itself, Bitcoin prices may initiate a long-term recovery. The analyst expects that if the final phase of the bull market begins, the short-term target price could be around $115,000, and may even reach as high as $190,000.