Even after hitting an all-time high on March 11, Philip Swift, founder of LookintoBitcoin, wrote in a post on Believe The Bitcoin bull market has just begun and “there is a long way to go”. Supporting this optimistic preview, Swift points to the MVRV Z-Score, a popular on-chain indicator, currently sitting at 2.87.
Bitcoin Bulls In Charge, MVRV Z-Score Low
Bitcoin strength has been relentless at the time of writing, driving the price to record highs. After easing above $70,000 last week, the price surged on March 11, pushing the coin to an all-time high of $72,800. The bulls remain strong and expect further gains in the coming sessions and even hit a new all-time high.
While this is going on, the MVRV Z-Score is still low but rising as of March 12th. On-chain analysts often utilize this indicator to assess the stages of a bull cycle. Analysts can use this tool to determine how long Bitcoin has been undervalued relative to its fair value.
Historically and as follows: explained LookintoBitcoin’s MVRV Z-Score has proven to be helpful in identifying when the spot exchange rate is well above realized value. In this case, the realized value is the average price paid by the holder for all coins in circulation.
LookintoBitcoin data shows the MVRV Z-Score is up to 2.87, up from 2.82 when Swift posted on X. The score rose above 5 during the last bull cycle of 2021, when the price of Bitcoin surged to an all-time high.
Therefore, a lower figure in the spot reading means that the bulls have more room to push the price higher in the next session. This also means that the current all-time high of $72,800 is likely to be broken as the price surges.
With Bitcoin trending near all-time highs and confidence rising, the low MVRV Z-Score only adds to the chorus of bullish sentiment surrounding the world’s most valuable coin. The current surge is largely pinned on institutions doubling their coins, taking more coins out of circulation.
Wall Street Players Accumulating BTC
MicroStrategy, a business intelligence company traded on Nasdaq, has accumulated bitcoin. The company currently manages 205,000 BTC, worth more than $9 billion, with an average price of less than $34,000. From February 26 to March 10, MicroStrategy purchased an additional 12,000 BTC.
Moreover, spot Bitcoin exchange-traded fund (ETF) issuers are accumulating more coins on behalf of their customers. Lookonchain data as of March 11th show BlackRock purchased 4,853 BTC, bringing its total holdings close to 196,000 BTC.
Featured image from Canva, chart from TradingView