After a massive selloff last week, one of bitcoin’s closely watched onchain metrics is approaching a threshold that has historically marked bear market bottoms.
The metric is called the market value-to-realized value (MVRV) Z-Score. Every major bitcoin cycle bottom has coincided with the Z-Score touching or briefly dipping below zero (into the green zone, in the chart).
And right now, it is knocking on the door of the zone that has coincided with the lowest point of previous bear markets. It happened in 2011-2012 when bitcoin saw its first major crash. It happened again in 2014 and late 2018. Most recently, it fell below zero in the second half of 2022, marking a price bottom that paved the way for a three-year bull run.
