Cryptocurrency analyst Benjamin Cowen points to a significant indicator suggesting that the Bitcoin (BTC) 
$99,148 bull market may be nearing its end. He emphasizes the importance of the MVRV Z-score in evaluating Bitcoin’s valuation by comparing its market capitalization to the most recent price movements.
What is the MVRV Z-Score?
Cowen explains that the MVRV Z-score measures whether Bitcoin is undervalued, overvalued, or at its true value by assessing its market cap against previous coin price movements. He notes that historical peaks in market cycles for Bitcoin have coincided with the MVRV Z-score reaching a particular range.
He adds that the first cycle peak corresponded to an MVRV Z-score of approximately 7.68, while the latest peak reached around 7.15.
Current Situation and Future Expectations
Currently, Cowen reports that the high level of the MVRV Z-score for this cycle is 3.29. He argues that this metric could be valuable for confirming market cycle peaks.
At the time of writing, Bitcoin is trading at around $98,253. In March 2024, when the market felt overheated, analysis of the MVRV Z-score demonstrated that it was not indicative of a market cycle peak. Such indicators may assist Bitcoin holders in better understanding market trends.
This analysis provides an additional tool for assessing Bitcoin’s value for traders. The indicator suggesting an approaching peak further confirms that bull markets have yet to reach their cap. By examining the MVRV Z-score, traders can identify potential profit-taking periods.
