Bitcoin Indicator That Signaled 10x Rally in 2017 Flashes Again

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A Bitcoin trend indicator whose last appearance in 2017 had sent the prices 10 times higher appeared again this Wednesday morning. Dubbed as “Bitcoin MVRV Z-Score,” the indicator is nothing but a ratio of the difference between the cryptocurrency’s actual and realized market capitalization. Glassnode, the blockchain analysis platform that created the said metric, sees the score below zero as a sign of an undervalued Bitcoin. Meanwhile, anything above 7 indicates a market top—an overbought Bitcoin. “The MVRV Z-Score is used to assess when Bitcoin is over/undervalued relative to its fair value,” Glassnode explained. “When market value is significantly higher than the realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone).” Bitcoin MVRV Z-Score crossed above 5. Source: Glassnode Bitcoin reached ‘5’ on Wednesday for the first time since December 2017. Glassnode stated that a similar upside move in…

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