Bitcoin MVRV Dead Cross Raises Concerns of Downward Pressure

Latest data from CryptoQuant has spotted some issues over Bitcoin MVRV ratio movement. Today, data from CryptoQuant identified an appearance of rare, but potential bearish signal for Bitcoin market.

Latest data from CryptoQuant has spotted some issues over Bitcoin MVRV ratio movement. Today, data from CryptoQuant identified an appearance of rare, but potential bearish signal for Bitcoin market. Yonsei Dent, a crypto analyst from CryptoQuant, spotted a formation of a MVRV Death Cross on Bitcoin, raising concerns over a falling market risk.

MVRV Dead Cross Signals Mounting Downside Risk

“In early March, the 30DMA crossed below the 365DMA — a bearish dead cross — signaling weakening short-term momentum and growing downward pressure.

…With the MVRV now converging toward its long-term historical average, it appears that the market is pricing in an MVRV multiple around 10x to 15x, a level typically reached during market bottoms.”

According to latest metrics reported by the CryptoQuant analyst, Bitcoin’s 30-day moving average (DMA) has tremendously dropped, a decrease that has brought it to cross under the 365-day moving day average (DMA). This situation is commonly known as a “death cross.”

According to Yonsei, "In early March, the 30DMA crossed below the 365DMA—a bearish 'dead cross'—signaling weakening short-term momentum and growing downward pressure. As the chart shows, this type of double cross occured during previous market bottoms in 2011, 2015, and 2019."

"The lower timeframe chart provides a closer look at the 30DMA dropping below the 365DMA. This event is quite rare, occuring only a few times before. As the chart shows, this type of double cross occured during previous market bottoms in 2011, 2015, and 2019.

"In March 2011, following the 50 MA (blue) dropping below the 200 MA (red) on the lower timeframe chart, Bitcoin experienced further decline, finally hitting bottom around $1. In December 2015, the 50 MA crossed below the 200 MA, and afterwards, Bitcoin continued to drop, finally hitting bottom around $330. And in March 2019, the 50 MA went below the 200 MA, and afterwards, Bitcoin went on to hit bottom around $3,000."

"It is important to note that, in the past, such indicators were often accompanied by price consolidations after the event, and so it might be useful to keep an eye on this indicator in the coming weeks."

"The 30-day moving average (DMA) has decreased significantly, finally crossing below the 365-day moving average (DMA) in early March. This is an unusual occurrence, as the 30-DMA typically trades above the 365-DMA during periods of strong bullish momentum."

"However, as the chart shows, this type of double cross occured during previous market bottoms in 2011, 2015, and 2019. After the 50 MA (blue) crossed below the 200 MA (red) on the lower timeframe chart, Bitcoin experienced further decline, finally hitting bottom around $1. After the 50 MA crossed below the 200 MA, Bitcoin continued to drop, finally hitting bottom around $330. After the 50 MA went below the 200 MA, Bitcoin went on to hit bottom around $3,000."

"It is important to note that, in the past, such indicators were often accompanied by price consolidations after the event, and so it might be useful to keep an eye on this indicator in the coming weeks."

"The implication of this convergence is that the market is now pricing in an MVRV multiple of around 10x to 15x, a level typically reached during market bottoms. This suggests that, despite the recent market downturn, we might be nearing a point where Bitcoin is once again becoming undervalued."

"It is also worth noting that the MVRV ratio has been used by analysts to predict previous market bottoms with surprising accuracy. For instance, during the 2019 bear market, when the MVRV ratio fell below 10x, it signaled the beginning of a strong upward trend that led to new highs.

"While there are no clear indicators of a bottom yet, it is something to keep in mind as we observe the unfolding market dynamics."

"Finally, the chart shows that the 30DMA has decreased significantly, finally crossing below the 365DMA in early March. This is an unusual occurrence, as the 30DMA usually trades above the 365DMA during periods of strong bullish momentum.

"However, as the chart shows,