The bulk of cyclic indicators, including but not limited to Bitcoin’s MVRV Ratio, SOPR Ratio, and Realized Cap-UTXO Age Bands, indicate that Bitcoin is near the bottom. These indicators’ historical data suggest a pattern that has often foreshadowed an upward upswing.
The bulk of these indications, as shown on charts from the crypto analytics portal CryptoQuant, indicate that Bitcoin is now undervalued, predicting an eventual surge. The substantial amount of unrealized loss on the bitcoin market is another evidence that the asset is nearing its bottom.
The Bitcoin Puell Multiple — the ratio of daily Bitcoin supply to the yearly average – is about 0.4, signaling a probable bottom for the commodity. The Bitcoin Puell Multiple is at its lowest level in more than two years.
In addition, Bitcoin’s MVRV Ratio, which represents the ratio of the asset’s actual market capitalization to its realized capitalization, has a final value of 0.9, indicating a bottom. Historically, an MVRV Ratio number over 3.7 implies a price peak, while values below 1 suggest a price trough.
The last time the MVRV Ratio of Bitcoin approached this level was in March of 2020 when Bitcoin fell from $8,500 to $4,800 vs the dollar. After reaching this nadir, the asset’s value increased to $28,000 by the end of the year.