Bitcoin’s MVRV ratio drops to 1.1 as BTC hits $60K
Bitcoin’s MVRV ratio has fallen to 1.1 after a sharp selloff that pushed BTC from about $80,000 down to $60,000.
The article says Bitcoin’s MVRV ratio is approaching a historically “undervalued” zone near 1.0, which in past cycles has often aligned with major market bottoms and accumulation phases. However, the move is not presented as proof that the final bottom is already in.
Technicals remain weak. Bitcoin is trading below the 50-day, 100-day, and 200-day moving averages, keeping the short-term bias bearish. RSI is around 27, typically considered oversold and sometimes followed by short relief rallies.
At the same time, trading volume has spiked during the decline, which may signal capitulation. Historically, heavy volume selloffs can precede more durable bottom formations, but the article warns volatility may persist.
Overall, Bitcoin’s MVRV ratio (now 1.1) suggests valuation stress and potential for a bounce, while trend indicators still point to pressure—leaving traders to watch whether oversold conditions turn into a sustained reversal or another leg down.
Neutral
The news is mixed for traders. On the bullish side, Bitcoin’s MVRV ratio falling to 1.1 suggests BTC is nearing a historically undervalued region close to 1.0, a level that has often appeared around major cycle lows in prior market phases. The oversold RSI (~27) and the volume spike during the selloff also fit scenarios where capitulation can precede a relief rally or a longer-term bottom.
On the bearish side, price action and trend indicators still lean down: BTC is below the 50/100/200-day moving averages, which typically means sellers control momentum until a reclaim occurs. Past examples of oversold readings turning into only brief bounces are common when higher-timeframe trends remain negative.
So the expected impact is neutral: it can support dip-buying or tactical long setups after confirmation, but it does not yet invalidate the prevailing downtrend. Short-term traders may see volatility and choppy conditions, while long-term positioning depends on whether volume-driven capitulation is followed by a sustained recovery rather than a second leg lower.