Indicator Overview

The MVRV Momentum indicator measures Bitcoin’s overall valuation momentum by subtracting the yearly simple moving average (SMA) from the daily Market Value to Realised Value ratio (MVRV), a fundamental metric that compares current price to the aggregate cost basis of all coins in existence. The resulting differential is displayed as a filled histogram on the primary axis, with green above zero (positive momentum, indicating rising overvaluation) and red below zero (negative momentum, signalling increasing undervaluation), while Bitcoin price is overlaid on a secondary logarithmic axis in white for context. Optional moving average overlays on the momentum line provide additional smoothing.

How To Use

Positive and rising momentum (green bars expanding above zero) signals strengthening overvaluation and building euphoria across the entire holder base, often confirming mature bull markets, institutional inflows, and potential trend continuation, ideal for holding or cautious profit-taking. Negative and deepening momentum (red bars plunging below zero) reveals mounting undervaluation and broad-based capitulation, historically marking major cycle bottoms and the strongest accumulation zones. Divergences are highly predictive: price rallying while momentum weakens (fading green or turning red) warns of distribution and impending corrections, whereas price weakness with improving momentum (red fading or crossing green) suggests resilient long-term demand and high-probability reversals. Traders monitor zero-line crosses for major regime shifts, extreme positives as caution signals, and deep negatives as generational buying opportunities, making MVRV Momentum one of the most reliable long-term cycle oscillators for timing tops, bottoms, and inflection points in Bitcoin’s multi-year price cycles.