Bitcoin has extended its correction below the $100,000 threshold into the last 24 hours. Particularly, the last 24 hours have been highlighted by a consolidation in the price of Bitcoin, with the leading cryptocurrency only down by about 0.18% in this timeframe.
This correction kicked off on December 17, when Bitcoin experienced a significant price rejection after reaching $108,135. The notable reversal since then has allowed investors to question whether the rally has lost bullish momentum or if this is merely a temporary setback. However, crypto analyst CRYPTO₿IRB has challenged the notion that BTC’s cycle top has been reached. According to technical analysis, the MVRV indicator suggests a more upside move for Bitcoin this cycle.
MVRV Z-Score Shows No Signs Of A Cycle Top
Taking to social media platform X for his analysis, crypto analyst CRYPTO₿IRB highlighted an interesting bullish outlook for the Bitcoin price. Particularly, his outlook is based on the MVRV Z-Score, a metric that assesses market value relative to realized value. The MVRV Z-Score uses standard deviations from historical averages to identify moments when BTC is either undervalued or overvalued. Historically, Bitcoin’s market peaks have occurred when the MVRV Z-Score pushes above 7.0 and remains at that level for several weeks.
For example, the 2021 bull market peak of $67,700 was highlighted by an MVRV Z-Score of 7.0. Previous peaks before this in 2018 and 2014 were highlighted by MVRV Z-Scores between 9 and 10. At its recent $108,135 peak on December 17, Bitcoin’s MVRV Z-Score was just 2.42, suggesting that the cryptocurrency was still far below its historical overheated zone.
With this MVRV Z-Score phenomenon in mind, CRYPTO₿IRB noted that BTC is still on track to continue on its upward move this cycle. According to his projection, Bitcoin’s price would need to exceed $235,000 for the MVRV Z-Score to reach the historical overheated 7.0 for market peaks.
What The MVRV Z-Score Means For Bitcoin’s Current Market Cycle
The implications of the MVRV Z-Score analysis extend far beyond Bitcoin’s short-term price action. Speaking of short-term price action, BTC could continue on its consolidation below $100,000 into the next few days, although the correction is still within historical limits. The most important thing at this point is to continue maintaining support above $92,000.
If the MVRV Z-Score metric’s accuracy holds true, BTC could be in the early stages of its bull cycle rather than nearing its conclusion. This outlook leans more towards the general sentiment among traders, with some Bitcoin price predictions reaching as high as $1 million.
At the time of writing, Bitcoin is trading at $97,940. If BTC ultimately achieves the projected $235,000 price target associated with a Z-Score exceeding 7.0, this would mark a 140% increase from its current level.
