MVRV Z-Score (2y)

The MVRV Z-Score 2Y is an adaptation of the traditional MVRV Z-Score, designed to place greater emphasis on recent historical data. This version uses a 2-year rolling window to better reflect current market dynamics and mitigate the effects of long-term changes in Bitcoin price and on-chain behavior.

Interpretation

Similar to the MVRV Z-Score, the 2Y version compares Bitcoin's market value to its realized value, but uses a 2-year rolling window to capture more relevant market trends. The z-score (orange line) indicates overbought or oversold conditions based on the difference between these values. This adaptation helps highlight more recent market cycles while reducing the impact of long-term trends.

Key Insights

  • The MVRV Z-Score 2Y emphasizes recent market trends using a 2-year rolling window, providing a more current reflection of Bitcoin market health
  • The 2Y adaptation can be useful for identifying short-to-medium-term market extremes, with more relevance to recent market cycles

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