This chart presents the MVRV Ratio 🔵 alongside the 180-day simple moving average 🔴 as a gauge for momentum. 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:
⬆️ Strong Breaks Above 🟩 indicate large volumes of %ASSET% were acquired below the current price, and is now in profit (describing heavy accumulation near the lows).
⬇️ Strong Breaks Below 🟥 indicate large volumes of %ASSET% were acquired above the current price, and is now in loss (describing heavy distribution near the top).
For full details on the derivation of these models, please refer to our report Mastering MVRV.