Bitcoin MVRV just flashed a dead cross – here is why investors should pay attention

The Bitcoin market shows signs of fatigue after the cryptocurrency had fallen shortly near $ 107k, only two weeks after reaching a record high.

Data suggests that momentum in the market value for the indicator of the realized value (MVRV) appears to be weakened, at least in the short term.

MVRV Dead Cross

MVRV compares Bitcoin’s market capitalization with the total cost basis of all coins and serves as an important measure whether the active or undervalued is. Analysts often smooth out this data with advancing averages and the recent dead intersection between the average of 30 days and 365 days indicates the cooling momentum.

Cryptoquant explained That a similar pattern unfolded at the end of 2021 when Bitcoin climbed from $ 64.9k to $ 69k after an increase of 6.3% while MVRV slipped away when the inflow of capital decreased.

Today the setup looks known. Despite a stronger meeting of 13.3% rather from $ 109.4k to $ 124k in August, MVRV is falling again, which means that the Golf can be more powered by sentiment and institutional legitimacy by ETFs than by strong new influx. The divergence does not automatically signal a cycle top, because ETF acceptance has added structural resilience to the Bitcoin market.

Nevertheless, the indicator shows a crucial risk – overburdened valuations without proportional capital support. As history has shown, such conditions often lead to periods of consolidation or corrections. Although the Fundamentals will remain strong in the long term, structural signals such as MVRV return vulnerability in the short term.

Network growth and liquidity rise together

Zoom out, swissblock unveiled The network growth and liquidity of that bitcoin moves together. Since 2023, this pattern has consistently seen powerful BTC rallies. Network growth reflects the expansion of active participants and involvement in chains, while liquidity refers to capital availability in the market.

With both statistics that are currently climbing again, the analysis platform said that market participants are committed and reinforces the ecosystem, which could act as fuel for Bitcoin’s next large leg higher.