1-Year MVRV Z-Score Turns Negative in Crypto Market
1-Year MVRV Z-Score dips below zero as crypto market retreats, signaling weaker profits and key support at $106K.
- 1-Year MVRV Z-Score falls below neutral.
- $106K is critical support for short-term holders.
- Recovery needs Z-Score rebound and $118K reclaim.
The crypto market is experiencing a pullback from its recent all-time highs, and the latest on-chain metrics hint at growing caution. One critical signal is the 1-Year MVRV Z-Score, which has now slipped slightly below zero. This score tracks how profitable the average investor is compared to the asset’s one-year trend.
When the 1-Year MVRV Z-Score turns negative, it shows that unrealized profit has compressed. In simpler terms, more coins are near break-even or in loss. This shift reduces market confidence and can lead to weaker price performance if sentiment doesn’t quickly reverse.
Key Support at $106K for Short-Term Holders
The next major support level to watch is the Short-Term Holder (STH) Realized Price, currently around $106K. This price represents the average purchase cost of recent buyers. If Bitcoin drops below this level, it means many short-term holders would be underwater—holding losses rather than profits.
Historically, when this threshold is breached, panic selling can increase, leading to deeper market corrections. For the crypto market to avoid further decline, defending this level is crucial.
What Could Spark a Rebound?
Recovery in the crypto market will depend on two main signals. First, the 1-Year MVRV Z-Score needs to bounce back above zero, indicating that average investors are back in profit. Second, the price must regain the $118K level, restoring short-term momentum.
Until those two signals are met, the market remains vulnerable to further downside. Investors should stay alert and monitor these metrics closely to navigate potential volatility ahead.
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