Bitcoin MVRV Z-Score Nears Bear Market Bottom Threshold

Bitcoin's market value-to-realized value (MVRV) Z-Score, a closely watched onchain metric, is approaching the zero threshold that has historically coincided with the bottom of major bear markets.

After a massive selloff last week, the MVRV Z-Score is now knocking on the door of the green zone that marked previous cycle bottoms in 2011-2012, 2014, late 2018, and most recently in the second half of 2022. When this metric dips below zero, it has historically signaled that bitcoin is undervalued relative to its realized price, often marking the end of a bear market. For crypto traders, this indicator is significant because it suggests that the worst of the selling pressure may be behind us. Live bitcoin price charts on NowPrice show how the market is reacting to this onchain signal, with BTC currently trading around $62,945.

Looking ahead, traders will watch whether the MVRV Z-Score confirms a sustained move below zero or bounces from current levels. A confirmed dip could attract long-term buyers looking for a bottom, while a rejection might indicate further downside. Key levels to monitor include bitcoin's realized price and the 200-week moving average, both of which have historically served as support during bear markets. The next few weeks will be critical in determining whether this signal marks a true cycle bottom or just a temporary pause in the downtrend.