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raonbit
2021.01.08 00:48:15
The MVRV Z-Score is used to assess when Bitcoin is over/undervalued relative to its "fair value".
When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone).
Technically, MVRV Z-Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap, i.e. (market cap – realized cap) / std(market cap).
(https://studio.glassnode.com/metrics?a=BTC&m=market.MvrvZScore)