Bitcoin’s Valuation Metric Hints At A ‘possible Bottom’ Forming:...

Bitcoin’s MVRV ratio indicated that BTC was forming a potential local bottom, suggesting that the price can recover due to seller exhaustion.

Bitcoin's MVRV ratio dropping to the 1.8-2.0 range signals a local bottom, historically preceding price rallies.

Distress-driven selling may clear leverage, setting the stage for a market reversal, according to analysis.

Bitcoin (BTC) fell 11% between Nov. 3 and Nov. 4, breaking below the $100,000 level for the first time in four months. This led to the liquidation of over $1.3 million in leveraged long positions and coincided with profit-taking by long-term holders and capitulation by recent buyers.

Several key data metrics suggest that this drop to $98,000 may have marked the local bottom for BTC, offering a favorable entry point for the bulls.

Bitcoin’s Market Value to Realized Value (MVRV) ratio, an indicator that measures whether the asset is overvalued, has dropped to levels that have historically marked local bottoms, according to CryptoQuant analyst XWIN Research Japan.

Related: Bitcoin faces ‘insane’ sell wall above $105K as stocks eye tariff ruling

The Bitcoin MVRV ratio is “now hovering around 1.8, its lowest level since April 2025, signalling possible bottom formation,” the analyst said in a QuickTake analysis on Thursday, adding:

The last time this metric was this low was in mid-April, when the BTC/USD pair price bottomed at $74,500, before embarking on a 50% rally to its previous all-time high of $112,000 reached on July 9.

If history repeats itself and Bitcoin stages a similar recovery, it could rise as high as $150,000, representing about 50% increase from Tuesday’s low at $98,500.

Source: CoinTelegraph