A quant has broken down how the Bitcoin MVRV MACD oscillator could be used to check for signals in the price.
Bitcoin MVRV MACD Oscillator As Price indicator
As explained by an analyst in a CryptoQuant post, this metric can help detect both the lows and the highs in the price, as well as the greater trends. The “Bitcoin MVRV” is an indicator that measures the ratio between the market cap and the realized cap.
Here, the “realized cap” is a capitalization model for BTC that values each coin in circulation at the price at which it was last moved, rather than taking the same current BTC price as the value of all the coins, as the normal market cap does.
Since the realized cap is sort of a “true” value model for the coin, its comparison with the market cap (in the MVRV) can tell us whether the coin is undervalued or overvalued at the moment. When the MVRV is greater than 1, it means BTC is overpriced right now, while having values below the threshold suggests it’s underpriced.
We współpracy z: https://newsbtc.com/news/bitcoin/quant-explains-bitcoin-mvrv-macd-trends/
