Using the Bitcoin MVRV Indicator: How to Read Market Signals

AirdropHunterWang · 2026-02-16T12:16:55+00:00

Glassnode's monitoring indicates that Bitcoin's MVRV Z-Score has recently reached 0.239, signaling important insights for market sentiment. This metric helps investors assess whether the market is overvalued or undervalued, proving useful for developing long-term investment strategies.

AirdropHunterWang

2026-02-16 12:16:55

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According to the latest monitoring from Glassnode, the Bitcoin MVRV Z-Score recently reached 0.239, hitting its highest level in several months. This provides an important signal for assessing market sentiment. As the need to monitor the MVRV indicator increases, investor interest in this metric is also growing.

The Meaning of the MVRV Z-Score Tracked by Glassnode

The MVRV-Z score is a relative indicator calculated as (Market Value - Realized Value) ÷ Standard Deviation of Market Value. Here, “Realized Value” refers to the total value of all Bitcoins based on the final transfer prices recorded on the Bitcoin blockchain.

The core of this indicator is to quantify the divergence between the market price and the actual value. A high score suggests that the market capitalization of circulating Bitcoins is excessively overvalued compared to their actual trading value. Conversely, a low score indicates an undervalued state.

Using the MVRV Indicator to Signal Market Conditions

The MVRV Z-Score helps investors determine whether the market is overheated. A moderate indicator value like 0.239 suggests that the market is not in an extreme overheated or severely undervalued state.

Regularly monitoring the MVRV indicator through the tracking site allows for a more objective understanding of Bitcoin market cycles. It helps identify when buy and sell signals appear during upward and downward cycles, making it useful for long-term investment strategies.

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