Bitcoin's MVRV Flash Signals a Stronger Recovery Phase
Bitcoin's recent price action is showing signs of a historic bullish signal, according to data from AMBCrypto. The current rally is reminiscent of patterns seen during previous bull runs, with BTC's 7%+ weekly rally pushing prices back into the $85k-$90k range.
The short-term holders (people who have held BTC for less than 150 days) are now back around their breakeven levels, implying that recent buyers are recovering their unrealized losses as BTC moves higher. This is a positive development for the market, but it also raises concerns about potential overheating.
The Fear and Greed index has entered 'extreme greed' territory for the first time since Q3 2025, with a reading of $937.3 million in net inflows into Bitcoin ETFs on September 21st marking the largest single-day inflow since BTC's October 2025 peak.
While this supports the bullish trend, it also raises the risk of BTC struggling to break $90k in one straight move as the market heats up. Historically, MVRV (Market Value over Realized Value) has crossed back above its 365-day average following negative momentum, suggesting that the market is entering a healthier profit zone with investor profitability and momentum starting to improve.