According to a recent analysis by crypto analyst Ali Martinez, the MVRV (Market Value to Realized Value) indicator, a key indicator of Bitcoin’s future price movements, has given a positive signal.
MVRV is a ratio that compares the current value of a crypto asset to its actual value by dividing the Bitcoin market value to its realized capitalization. This indicator is used to evaluate whether Bitcoin is undervalued or overvalued. Analyst Ali Martinez, based on historical data in analysisstates that Bitcoin’s MVRV indicator indicates a possible increase in the price of the leading crypto asset.
According to Martinez, whenever Bitcoin’s MVRV Ratio has fallen below the 90-day average over the past year, it has often heralded an opportunity to buy the dip. Currently, the BTC MVRV Ratio is again below the 90-day average, indicating that Bitcoin is likely at a favorable buy point.
“Every time the Bitcoin MVRV Ratio fell below the 90-day average last year, it signaled a buying dip opportunity. Currently, the BTC MVRV Rate is again below the 90-day average, indicating that it may be a good moment to buy BTC.”
NEWS CONTINUES BELOW
Bitcoin is trading at $43,105 at press time.
Another cryptocurrency followed by the analyst is Dogecoin (DOGE). As we previously reported, Martinez drew attention to an important development regarding the leading meme coin. Citing data from IntoTheBlock, the analyst said DOGE witnessed a “remarkable growth spike” last week, with new addresses increasing by nearly 1,100% told.
According to the crypto analyst, this growth in the number of Dogecoin addresses is a strong fundamental sign that bodes well for the meme coin’s potential.
“On January 29 alone, a record-breaking 247,240 new DOGE addresses were created, reaching an all-time high. “The continuous upward trend in network expansion may soon have a positive impact on DOGE prices.”
You can follow the current price movement here.