Bitcoin (BTC) Cycle Top Has Not Been Reached, MVRV Z-Score Suggests

Bitcoin has extended its correction below the $100,000 threshold into the last 24 hours. Particularly, the last 24 hours have been highlighted by a consolidation in the price of Bitcoin, with the leading cryptocurrency only down by about 0.18% in this timeframe.

Bitcoin's (CRYPTO: BTC) price correction below the $100,000 level continued during the last 24 hours. Specifically, Bitcoin's price consolidated during the last 24 hours, with the leading cryptocurrency down by only about 0.18% during this timeframe.

This price correction began on December 17, when Bitcoin faced a strong rejection after hitting $108,135. This notable reversal has left investors questioning whether the rally has lost bullish momentum or if this is only a temporary setback. However, crypto analyst CRYPTO₿IRB has disputed the idea that BTC's cycle top has been reached. According to technical analysis, the MVRV indicator suggests more upside for Bitcoin this cycle.

MVRV Z-Score Shows No Signs Of A Cycle Top

In his analysis, which was posted on social media platform X, crypto analyst CRYPTO₿IRB highlighted a bullish outlook for the Bitcoin price. Specifically, his outlook is based on the MVRV Z-Score, a metric that compares market value to realized value. The MVRV Z-Score uses standard deviations from historical averages to identify periods when BTC is either undervalued or overvalued. Historically, Bitcoin's market peaks have occurred when the MVRV Z-Score moves above 7.0 and remains at that level for several weeks.

For example, the 2021 bull market peak of $67,700 was marked by an MVRV Z-Score of 7.0. Previous peaks before this in 2018 and 2014 were marked by MVRV Z-Scores ranging from 9 to 10. At its recent peak of $108,135 on December 17, Bitcoin's MVRV Z-Score was only 2.42, suggesting that the cryptocurrency was still far below its historical overheating zone.

With this MVRV Z-Score phenomenon in mind, CRYPTO₿IRB noted that BTC is still on track to continue on its upward move this cycle. According to his projection, Bitcoin's price would need to cross $235,000 for the MVRV Z-Score to reach the historical overheated level of 7.0 for market peaks.

What The MVRV Z-Score Means For Bitcoin's Current Market Cycle

The implications of the MVRV Z-Score analysis go beyond Bitcoin's short-term price action. Speaking of short-term price action, BTC could continue on its consolidation below $100,000 into the next few days, though the correction is still within historical norms. The key level to continue watching for support on the shorter timeframes is $92,000.

If the accuracy of the MVRV Z-Score metric holds true, BTC could be in the early stages of its bull cycle rather than nearing its conclusion. This outlook leans more towards the general sentiment among traders, with some Bitcoin price predictions reaching as high as $1 million.

At last check, Bitcoin was trading around $97,940. If BTC ultimately reaches the projected $235,000 price target associated with a Z-Score crossing 7.0, this would mark a 140% increase from its current level.