Analyst: Bitcoin MVRV percentile drops below 30, still consistent with accumulation range characteristics

BlockBeats news, October 18 - Crypto analyst Darkfost posted that after Bitcoin encountered resistance near $87,000, the MVRV percentile has fallen back below 30, re-entering a transitional phase following market capitulation. He believes that current valuations still align with the characteristics of an accumulation range.

Darkfost explained that MVRV is used to compare Bitcoin's market capitalization with its realized capitalization, the latter calculated based on the price at which each BTC last moved on-chain. His approach is not merely to observe the raw MVRV value, but to measure the relative position of the current value within its historical evolution, in order to reduce the impact of Bitcoin's structural changes and market cycles on indicator interpretation, and to analyze it within the current market environment.

He pointed out that historically, Bitcoin has only spent about 25% of the time at the current valuation level. Although it has now left the extreme undervaluation range that has always coincided with market lows in the past, it still aligns with the characteristics of historical accumulation ranges.