Bitcoin is nearing $110,000 again, recently reaching an intraday high of $108,116 and maintaining levels above $107,000. Despite a recent dip below $99,000, the overall market sentiment remains bullish.
Recent price movements over the last 24 hours have eased concerns that Bitcoin has peaked this cycle. The MVRV Z-Score, an on-chain metric measuring Bitcoin’s valuation relative to realized value, offers insight that challenges the idea of a short-term top.
MVRV Z-Score Indicates Bitcoin Has Room to Grow
Crypto analyst Doctor Profit shared on the social platform X that Bitcoin’s current MVRV Z-Score is just above 2, a neutral range historically associated with healthy market conditions. Previous cycle peaks occurred when the score exceeded 8, entering the red zone that signals overvaluation.
Historical data shows Bitcoin’s MVRV Z-Score matched price tops in 2011, 2013, 2017, and 2021, all aligning with scores in the red zone. In contrast, despite setting new highs in May, the current cycle’s score remains well below those levels, suggesting significant upside potential remains.
Current Trends and What They Mean
The recent pattern features lower highs in the MVRV Z-Score, unlike the extreme peaks seen in past cycles. This may indicate market maturation or an approaching cycle peak, but it is not definitive.
The key takeaway is that Bitcoin’s price has historically only peaked when the MVRV Z-Score enters the red zone, which it has not done yet. Price predictions for the eventual peak vary markedly, ranging from $150,000 to $500,000.
At the time of writing, Bitcoin trades at $107,740, up 1.4% in the past 24 hours.