MVRV

MVRV

The Market Value to Realized Value (MVRV) is an advanced on-chain indicator designed to assess the ratio between the Market Value and the Realized Value of Bitcoin.
Market Value is calculated as the current price of Bitcoin multiplied by its circulating supply and realized Value is derived by multiplying the realized price of Bitcoin (the price at which the coins last moved) by the circulating supply. It represents the total cost basis of all Bitcoin held.



Features

This script offers several customizable inputs, enabling traders to tailor the indicator to their preferences. Traders can also adjust the thresholds to define the sensitivity of overbought and oversold conditions.

It has 10 available color schemes to choose from and the background coloring on the chart can be toggled on and off.



Practical Applications
This indicator is designed for traders who focus on identifying cycle extremes and potential mean reversion opportunities.

Detecting Overbought and Oversold Conditions: The indicator measures how far the price has deviated from its norm, allowing traders to identify overbought or oversold conditions with precision.

Timing Market Reversals: The indicator provides early signals of potential market reversals by highlighting when the price has moved too far away from its average, helping traders anticipate reversion opportunities.