This chart presents the MVRV Ratio 🟠 alongside the 1yr simple moving average 🔵 as a gauge for momentum. Periods where MVRV trades above the 1yr SMA typically describe macro market uptrends, and periods below describe downtrends. Cycle transition points are often characterized by the MVRV breaking strongly across the 1yr SMA threshold:

• ⬆️ Strong Breaks Above 🟩 indicate large volumes of BTC was acquired below the current price, and is now in profit (describing heavy accumulation near the lows).

• ⬇️ Strong Breaks Below 🟥 indicate large volumes of BTC was acquired above the current price, and is now in loss (describing heavy distribution near the top).

Further References

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