The MVRV indicator, assessing Bitcoin's overvaluation or undervaluation, points to possible continued price growth in this cycle, according to crypto analyst Chapo.
Rising MVRV and Its Significance
The Market-Value-to-Realized-Value (MVRV) indicator for Bitcoin is at 1.95, suggesting that the cryptocurrency still has room for growth. According to Chapo, MVRV could reach 3.2, forecasting another bullish year before the cycle peak.
Historical Examples and Forecasts
In April 2021, when MVRV reached 3.2, Bitcoin was valued at $58,253, representing a 101% gain from the 2021 starting price. Similarly, in January 2025, the MVRV reached 2.44 as Bitcoin rose to an all-time high of $109,000.
Analysts' Opinions and MVRV Future
Julio Moreno from CryptoQuant notes that despite the current MVRV signal, Bitcoin might see further decline before resuming upward momentum. The MVRV indicator remains below the 365-day moving average, indicating a possible correction.
Analysts continue to watch the MVRV level, which remains an important indicator of cryptocurrency overvaluation. Despite a prolonged correction, there's speculation that Bitcoin may recover growth in the current cycle.
