The MVRV 365DMA indicator is attracting attention from analysts, indicating potential changes in the crypto cycle. The current formation resembles the behavior of this indicator in 2021.
What Is MVRV 365DMA?
MVRV 365DMA (Market Value to Realized Value) compares Bitcoin's market value to its average realized value over the past 365 days. This metric helps determine whether the asset is overvalued or undervalued. When MVRV is significantly high, it signals that market prices far exceed the original investments, a common trait observed during market tops.
Potential Peak and Its Significance
In 2025, a similar formation is being observed. The MVRV 365DMA is once again on the rise and may be forming its second peak. Analyst @Yonsei_dent noted that the behavior of the MVRV 365DMA is reminiscent of 2021, indicating the end of the bull cycle and the start of the bear market. Quote: "In 2021, the MVRV 365DMA formed a double-top camel pattern — a peak followed by another six months later — just before the bear market began."
Investor Recommendations
While no indicator can accurately predict the markets, the current MVRV formation should prompt caution among investors. If this second peak completes, it may point to a cycle peak similar to late 2021. Investors are advised to closely monitor this metric in the coming weeks and consider strategic decisions, including profit-taking or hedging.
The MVRV 365DMA formation could indicate significant changes in the cryptocurrency market. Investors need to stay vigilant and consider multiple data points to assess market direction.
