Bitcoin MVRV Just Flashed a Dead Cross – Here’s Why Investors Should Pay Attention

The Bitcoin market is showing signs of fatigue after the cryptocurrency briefly fell near $107K, merely two weeks after hitting an all-time ￰0￱ suggest that momentum in the Market Value to Realized Value (MVRV) indicator appears to be weakening, at least in the short ￰1￱ Dead Cross MVRV compares Bitcoin’s market cap to the aggregate cost basis of all coins, and serves as a key measure of whether the asset is over- or ￰2￱ often smooth this data with moving averages, and the recent dead cross between the 30-day and 365-day averages points to cooling ￰3￱ explained that a similar pattern unfolded in late 2021 when Bitcoin climbed from $64.9K to $69K after a 6.3% increase while MVRV slipped as capital inflows dwindled.

Today, the setup looks ￰4￱ a stronger 13.3% rally previously from $109.4K to $124K in August, MVRV is once again falling, which means that the surge may be driven more by sentiment and institutional legitimacy through ETFs than by strong new ￰5￱ divergence does not automatically signal a cycle top, as ETF adoption has added structural resilience to Bitcoin’s market. Still, the indicator depicts a crucial risk – overstretched valuations without proportional capital ￰6￱ history has shown, such conditions often lead to periods of consolidation or ￰7￱ long-term fundamentals remain strong, structural signals like MVRV depict fragility in the short ￰8￱ Growth and Liquidity Surge Together Zooming out, Swissblock revealed that Bitcoin’s network growth and liquidity are moving upward in ￰9￱ 2023, this pattern has consistently seen powerful BTC ￰10￱ growth reflects the expansion of active participants and on-chain engagement, while liquidity hints at capital availability in the ￰11￱ both metrics currently climbing again, the analytics platform said that market participants are re-engaging and the ecosystem is strengthening, which could act as fuel for Bitcoin’s next major leg higher.