This chart presents the MVRV Ratio, with key levels considered historically aligned with cycle extremes highlighted.
The approach is to calculate the proportion of days through history where MVRV has traded below, or above these levels. Here we have will considered results since 2017, which is aligned with a more mature Bitcoin market. 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.