In terms of charts, Bitcoin has remained flat over the past few trading days. For the past seven days, the current performance is 0.00%. Bitcoin is trading within a narrow trading range. Nevertheless, uncertainty is still widespread and a technical trend reversal cannot yet be inferred from the chart. However, if we consider several indicators, we quickly come across the Z-Score MVRV. The bitcoin indicator currently identifies bitcoin as severely undervalued. Such buying opportunities would have existed only four times in the past. 2012, 2015, 2019 and 2020. Historically, the price of Bitcoin has almost always multiplied in a timely manner. So should you buy Bitcoin now? Our Bitcoin price prediction:
Strongly bullish MVRV Z-Score: Bitcoin massively undervalued in 2022
The MVRV Z-Score currently indicates a massive undervaluation of Bitcoin. The market capitalization is lower than the realized capitalization for Bitcoin, which means that the Z-Score indicates an undervaluation. However, if you look at the lows of the last cycles, the z-score was generally a bit lower. The gap between market capitalization and realized capitalization was also slightly higher. In this regard, the correction may continue despite the severe undervaluation ahead of the start of the next historic Bitcoin market cycle.
What is the MVRV Z-score?
Fair value calculations are common in the stock market. On the other hand, according to the widely held opinion, there is no such thing as fair value in the crypto market. Nevertheless, assessment methods are needed to identify a favorable entry point. The MVRV Z-Score shows the difference between the current market capitalization and the realized market capitalization of bitcoin.
Realized capitalization calculates bitcoin values based on when they were last transferred on-chain to estimate the actual price paid by BTC. In contrast, market capitalization simply multiplies each coin by the current price.
At the same time, one can see the standard deviation of market capitalization over the long term. The MVRV-Z-Score has been able to mark highs and lows in the typical Bitcoin cycle relatively reliably in the past.
If the Z-Score MVRV is historically high, an intermediate top is indicated, which is followed by a mostly significant correction.
If the Z-Score MVRV is historically rather low, it indicates an intermediate low that favors a strong recovery.
The MVRV Z-Score has been a fairly reliable indicator of recent bear market lows. Accordingly, an entry into Bitcoin could be an option.
Bitcoin Bullish Prediction: Should You Buy BTC Now?
According to the MVRV Z-Score, Bitcoin is currently undervalued. Nevertheless, one should not make a purchase decision solely on the basis of a single indicator. Because the MVRV Z-Score cannot clearly predict when an asset will recover and the undervaluation in the market will be resolved. In particular, macroeconomic uncertainties and the FTX crash drove the price of Bitcoin down in 2022. Moreover, these exogenous factors are likely to determine when Bitcoin will recover.
Nevertheless, the MVRV Z-Score gives hope. Brave investors could continue to act offensively and accumulate Bitcoin in tranches in order to simply buy larger shares in a possible new sell-off.
Trade bitcoins now for free
Bitcoin Alternative: This new coin could also be valued more cheaply in the current market environment
Anyone who considers Bitcoin to be cheap should also take a look at the following crypto presale. Admittedly, it is sometimes difficult for new coins to determine a fair valuation in the wider market. Whether the new coin is undervalued or not, before the ICO, this is hardly possible to assess. Nevertheless, circumstances could have tipped in Dash 2 Trade’s favor over the past few weeks. Because in times of growing uncertainty, investors’ need for information increases.
They want to analyze their coins even more deeply in order to rule out any risk. AI developers, quantitative analysts and professional traders have been working on the design of the dashboard for several months. Now the multifunctional dashboard seems ready to launch. As a result, officials shortened the presale, so the ICO will take place after the next presale phase. CEX listings at LBank and BitMart are also already confirmed – D2T is a bullish candidate for post ICO outperformance in 2023.
Buy Dash 2 Trade in presale here