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MVRV Z-Score

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The MVRV ratio compares Bitcoin’s market cap (current price × supply) to its realized cap (the value of all coins at the price they last moved). It shows how overheated or undervalued Bitcoin is relative to historical investor cost bases.

Core Idea: High MVRV = market likely overheated (potential top). Low MVRV = market undervalued (potential bottom). It measures market sentiment and potential risk zones.

Important: Strong historical signals, but not foolproof. Best used as a macro tool — not for timing short-term moves.

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