This chart presents the proportion of all-time trading days that the MVRV Ratio has traded above, or below particular levels which have historically aligned with cycle extremes.
The approach is to calculate the proportion of days through history where MVRV has traded below, or above these levels. For example, if MVRV has only been below a particular level for 10% of trading days, that means it has been above it for the other 90%, making that scenario more likely.
The following 'extreme values' are shown:
🔵 Extreme Lows: MVRV has been Below 0.8 for around 5% of trading days.
🟢 Getting Low: MVRV has been Below 1.0 for around 15% of trading days.
🟠Getting High: MVRV has been Above 2.4 for around 20% of trading days.
🔴 Extremely High: MVRV has been Above 2.4 for around 6% of trading days.
For full details on the derivation of these models, please refer to our report Mastering MVRV.