Bitcoin (BTC) Market Data Highlights Key Support Zones as MVRV Z-Score Signifies Crucial Support Level Near $80.1K

The exclusive market data concerning Bitcoin's MVRV Z-Score, highlights key support zones for the top crypto asset.

Bitcoin price has been showing resilience above the mean level. As per the latest data from Glassnode, the MVRV Z-Score of the top crypto asset signifies a crucial support level near $80.1K.

The crypto market intelligence platform discussed the current status of Bitcoin’s MVRV Z-Score as well as the potential implications.

Bitcoin price has been moving sideways for the past few weeks after a strong rally in the first half of 2023. The world’s largest cryptocurrency reached a local peak of around $104K in early March and has since been trading in a range with lower highs and higher lows.

At the time of writing on March 22, 2023, Bitcoin price is trading around $96K, which is close to the mean level of $96.3K. The MVRV Z-Score is a metric that helps to identify whether Bitcoin is overvalued or undervalued.

The metric is calculated by comparing the difference between the realized price and the market price and then adjusting it for the standard deviation. A positive Z-Score indicates that Bitcoin is trading above its realized price, while a negative Z-Score indicates that it is trading below its realized price.

According to Glassnode, a continued bullish momentum could see Bitcoin price move towards the +2σ level, which is seen at $118.0K. This level is said to be reached by Bitcoin before showing extreme overvaluation and possible market tops.

However, if traders show reluctance at this level, Bitcoin price can move lower, presenting the next crucial support at -1.5σ, which equals $80.1K before further downtrend.

As Bitcoin price attempts to find the next directional move, key levels are being highlighted by analytics firms to help traders and investors prepare for the upcoming trend.

With the recent bullish continuation and traders’ enthusiasm, the higher probability scenario can be bullish. However, the lower probability scenario can also occur, especially with Bitcoin, which is known to make large moves in both directions.