This chart presents the MVRV Momentum Oscillator, derived from the ratio between MVRV, and the 1yr moving average, minus 1.

Periods where MVRV trades above the 180-day SMA typically describe macro market uptrends, and periods below describe downtrends. Cycle transition points are often characterized by the MVRV breaking strongly across the 180-day SMA threshold, at which time this oscillator is designed to flip polarity.

• 🟥 Sharp declines (and negative values) indicate large volumes of supply have been recently transacted at higher prices, and have now fallen into an unrealized loss. This suggests a 'top heavy' market which may be sensitive to price declines.

• 🟩 Sharp increases (and positive values) indicate large volumes of supply have been recently transacted at lower prices, and have now returned into an unrealized profit. This suggests a 'bottom heavy' market following heavy capitulation, into accumulation.

Further References

For full details on the derivation of these models, please refer to our report Mastering MVRV.