• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Animoca Denies $200M Metaverse Fund Cut

2023-03-27

Coinbase Chief Legal Officer Says SEC’s Wells Notice a Massive Overreach on Part of Regulator

2023-03-26

US Prosecutors Slam Terra (LUNA) Founder Do Kwon With Eight Counts of Fraud for 2022 Crypto Collapse

2023-03-26
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20

    Nissan Doubles Down on Web3 Innovation

    2023-03-13
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Coinbase Chief Legal Officer Says SEC’s Wells Notice a Massive Overreach on Part of Regulator

    2023-03-26

    US Prosecutors Slam Terra (LUNA) Founder Do Kwon With Eight Counts of Fraud for 2022 Crypto Collapse

    2023-03-26

    Crypto Analyst Nicholas Merten Says Fed Money Printing Won’t Spark New Bitcoin (BTC) Rally – Here’s Why

    2023-03-26

    Bitcoin and Ethereum Investors Are Not Flinching, US Pressure on Crypto Will Backfire: Chris Burniske

    2023-03-26

    Billionaire Chamath Palihapitiya Predicts Corrosion of the Economy, Says Fed Rate Hike Could Cause Real Damage

    2023-03-26
  • Learn

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17

    How to Short Sell Bitcoin

    2023-03-17

    Why Decentralized Exchanges Are On Rise? Can INNODEX Surpass Binance and Uniswap?

    2023-03-15
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Quant Explains How Bitcoin MVRV MACD Can Signal Trends
Bitcoin

Quant Explains How Bitcoin MVRV MACD Can Signal Trends

2023-01-05No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

A quant has broken down how the Bitcoin MVRV MACD oscillator could be used to check for signals in the price.

Bitcoin MVRV MACD Oscillator As Price indicator

As explained by an analyst in a CryptoQuant post, this metric can help detect both the lows and the highs in the price, as well as the greater trends. The “Bitcoin MVRV” is an indicator that measures the ratio between the market cap and the realized cap.

Here, the “realized cap” is a capitalization model for BTC that values each coin in circulation at the price at which it was last moved, rather than taking the same current BTC price as the value of all the coins, as the normal market cap does.

Since the realized cap is sort of a “true” value model for the coin, its comparison with the market cap (in the MVRV) can tell us whether the coin is undervalued or overvalued at the moment. When the MVRV is greater than 1, it means BTC is overpriced right now, while having values below the threshold suggests it’s underpriced.

Now, to use MVRV as a trading tool, the quant has taken the MACD oscillator of the indicator. A MACD oscillator is just the difference between the short-term and long-term exponential moving averages (EMA) of the metric in question. Here, these EMAs are the 50-day and the 100-day versions.

The below chart shows how the Bitcoin MVRV MACD can be used for finding tops and bottoms in the price:

Bitcoin MVRV MACD

The metric seems to have approached a value of 0 recently | Source: CryptoQuant

According to the quant, whenever the MVRV MACD has been higher than 0.3, it has been a signal that BTC is overbought currently. On the other hand, values less than -0.3 have signaled underbought conditions.

From the chart, it’s apparent that while these signals haven’t coincided with the cycle tops and bottoms, they have still correctly indicated some local tops and bottoms.

Now, here is another graph where the analyst has highlighted how divergences between the price and the MVRV MACD can signal future trends:

Bitcoin MVRV Trends

Various divergences between BTC and the MVRV MACD | Source: CryptoQuant

“A divergence occurs when the direction of a technical indicator and the direction of the price trend are moving in opposite directions,” explains the analyst. In the graph, it’s visible that whenever the MVRV MACD has moved up inside the negative region while the price consolidates sideways or declines, a bullish divergence has formed for Bitcoin.

Similarly, a bearish divergence has taken shape when the value of the crypto has been rising, but the indicator has been going down in the zone above zero. At present, none of these signals have formed in the current bear market so far.

BTC Price

At the time of writing, Bitcoin is trading around $16,800, up 1% in the last week.

Bitcoin Price Chart

Looks like BTC has stagnated after the rise yesterday | Source: BTCUSD on TradingView

Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Source link

Bitcoin Explains MACD MVRV Quant Signal Trends
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Crypto Analyst Nicholas Merten Says Fed Money Printing Won’t Spark New Bitcoin (BTC) Rally – Here’s Why

2023-03-26

Bitcoin and Ethereum Investors Are Not Flinching, US Pressure on Crypto Will Backfire: Chris Burniske

2023-03-26

Bitwise CIO sees ‘no path forward’ for spot Bitcoin ETF

2023-03-25

Bitcoin cannot be stopped – Regulators will only be playing Whack-a-Mole: Caitlin Long

2023-03-24
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Will Solana [SOL] holders see gloomy days ahead despite…

2022-08-11

Is Spring here? What weighted sentiments say about Bitcoin, BNB, XRP, Polkadot

2022-03-13

HM Treasury changes course on collecting data around unhosted crypto wallets

2022-06-20

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Animoca Denies $200M Metaverse Fund Cut

2023-03-27

Coinbase Chief Legal Officer Says SEC’s Wells Notice a Massive Overreach on Part of Regulator

2023-03-26

US Prosecutors Slam Terra (LUNA) Founder Do Kwon With Eight Counts of Fraud for 2022 Crypto Collapse

2023-03-26
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$27,929.000.58%
  • ethereumEthereum(ETH)$1,767.25-0.54%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.11%
  • binancecoinBNB(BNB)$328.820.55%
  • usd-coinUSD Coin(USDC)$1.00-0.11%
  • rippleXRP(XRP)$0.4740853.05%
  • cardanoCardano(ADA)$0.352923-1.69%
  • Lido Staked EtherLido Staked Ether(STETH)$1,766.48-0.11%
  • dogecoinDogecoin(DOGE)$0.073950-1.45%