The MVRV indicator has indicated a local Bitcoin bottom.
The MVRV ratio on the leading cryptocurrency's chart has fallen below its 365-day simple moving average (SMA), marking a local low. This was pointed out by CryptoQuant contributors from ShayanMarkets.
Source: CryptoQuant.
At the time of writing, the indicator is at around 1.9.
“Historically, every time the ratio fell below the 365-SMA, it signaled a buying opportunity and a bottom. This was observed in mid-2021, June 2022, and early 2024,” the experts noted.
They believe the persistent trend suggests that Bitcoin is once again “entering a phase of undervaluation, where long-term holders typically begin accumulating the asset.”
MVRV declined after digital gold fell to $103,000, “reflecting a reduction in speculative excess and an increase in long-term confidence,” ShayanMarkets said.
“If the indicator begins to rise from current levels, it will confirm that the recent sell-off was a cyclical bottom formation, warning of a resumption of the bullish phase in the fourth quarter,” the researchers concluded.
Comparison with gold
Analyst Michael van de Poppe noted that gold has fallen sharply, correcting by more than 8% in a single day. Bitcoin initially traded against the precious metal, but then also fell.
A pretty harsh move on Gold, as it is corrected by more than 8% on a day.
Initially, #Bitcoin moved up massively, but gave it back as well.
I don't think that this will last. The volatility on Gold is super high, that's due to the fact that it's a massive outlier which we've… pic.twitter.com/5pEt9Zi99g
— Michaël van de Poppe (@CryptoMichNL) October 22, 2025
“I don't think this will last long. Gold volatility is very high and is linked to the sharp price rise we've seen in recent months. I suspect gold has peaked, which means money should be redirected to other assets,” he added.
According to the analyst, the weak consumer price index should act as an incentive for a potential rate cut and the end of the US government shutdown. After that, Bitcoin will begin to rise as “risk appetite regains its strength.”
At the same time, Bitwise admitted that a potential rotation of 5% of capital from gold to Bitcoin could lead to an increase in the price of the first cryptocurrency to $240,000.
Bitwise says a 5% capital rotation from gold to Bitcoin could send BTC to $242,391 👀 pic.twitter.com/FwvjneWhdX
— Bitcoin Archive (@BTC_Archive) October 21, 2025
As a reminder, Bitwise Investment Director Matt Hougan explained the digital currency's lag behind precious metals.
Source: cryptonews.net
