Source: lookintobitcoin
I uploaded a post related to the MVRV Z Score about 1 month ago. If you wonder what it is, and need the explanation about it, please, click the link(I found something interesting in the MVRV Z score chart 🤯)
Since 2011, there has been 3 mega bullish markets. Today, the MVRV Z Score is 1.58, and the BTC price is aound $44k. I think if the BTC price surpasses $48k, the MVRV Z Score will be over 2. Then, it will be possible to collapse.
Alright, let's take a look at the MVRV Z Score history on this chart. Before entering 3 mega bullish markets, there are something in common. When the MVRV Z Score surpassed 2, the BTC has had corrections. The depth of the BTC price corrections depends on external market conditions such as recessions.
If the BTC Spot ETFs are approved next year, I think the MVRV Z Score will surpass 2 with ease. However, I'm not sure that it will be continuously increasing until 6~7. Anyways, even if there are good news such as the BTC spot ETFs approvals and exchanges getting licensed by the H.K(Hong Kong) regulatory authority, crypto investors should prepare the uncertainty of a next correction in terms of the quant investment.