Bitcoin's Bull Market Signal Flares Up Again
CryptoQuant has released a warning regarding Bitcoin's MVRV Z-Score indicator. The indicator is approaching its 365-day moving average, which has served as a significant regime change level in past market cycles.
In previous bull runs, a sustained breakout above the 365-day moving average on the MVRV Z-Score signaled a market transition from a recovery phase to an expansion phase. For example, the breakout in 2015-2016 preceded the 2017 bull market, and the 2020 move preceded the 2020-2021 rise.
The current picture does not yet confirm the start of a new bull market, as Bitcoin's MVRV Z-Score remains below its 365-day moving average. A breakout above this level could indicate a resurgence of unrealized profits across the network and the start of a new expansion regime.
CryptoQuant noted that in past major cycle lows, the MVRV Z-Score fell below zero, reaching a low valuation zone. However, this did not happen in the recent pullback, suggesting a structurally shallower correction or that a capitulation on the scale seen in previous macro lows may not yet be complete.