What is the Market Value to Realized Value Ratio (MVRV):The ratio between market cap and realized cap (Market Value to Realized Value (MVRV)).What does it show:The MVRV ratio shows when the current market value of Bitcoin is much higher or lower as the realized value. Therealized valueis the value of each Bitcoin when it last moved which can be interpreted as the cost basis of the investors.The spikes in the MVRV ratio declined over the last Bitcoin cycles as the total market value increased and the asset became more mature.How can it be used:Historically, when the MVRV ratio falls below 1, major bear market bottoms occured. In this region the price of Bitcoin is considered undervalued. On the other hand, when the MVRV ratio climbs above 3.5, the bull market was almost over and a severe price decline was most likely.Further reading:How the MVRV Ratio Can be Used to Predict Bitcoin Price Movements