In a nutshell, MV means Market Value of BTC. RV means Realized Value of BTC. Z score is a score of standard deviation between RV and MV, which means a bubble level of BTC.
There has been 3 cycles. Now, the 4th cycle is proceeding. Anyways, you can see that before entering bullish markets, MVRV Z scores have been pulling back from 2 to 1 😲 In those periods, BTC prices had suffered a correction and consolidations 😯 Interesting 😮
So, my guess is MVRV Z score is going up soon around 2, then, it would be going down to 1 due to some reasons. 10y-3m yield spread inversion has been recovering from the bottom. There has been many recessions after recovering of that. Therefore, I recommend that investors should prepare uncertainties.
Take a look at this chart. You can see ATH(All Time High)s of MVRV Z scores are going down. So, I expect that the next ATH of MVRV Z score would be around 6. After reaching 6, I'll be taking into account to sell more than four thirds of my crypto portfolio.
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