Bitcoin’s MVRV Ratio Reaches Key Support Level at 1.74 — Is a Consolidation Phase Underway?
BTC has retraced to a critical on-chain valuation level as its MVRV Ratio returns to its long-term mean of 1.74, according to new data from Glassnode.
This level, historically associated with market cooling and consolidation, is now being closely watched by analysts as a potential support zone.
What Is the MVRV Ratio?
The MVRV (Market Value to Realized Value) Ratio compares the market capitalization of Bitcoin to the total realized value (i.e., the aggregate cost basis of all coins in circulation).
In essence, it measures how much unrealized profit exists in the market:
- Higher MVRV (>2.5) often signals overheated conditions, with many investors sitting on large gains.Lower MVRV (~1.0–1.75) tends to reflect undervalued or consolidating markets.
- Chart Insight: Support at Mean = 1.74
The chart shows the BTC price (grey) alongside the MVRV Ratio (orange), with the long-term mean of 1.74 marked by a horizontal green band.
Historically, this level has:
- Acted as a reset point during bull cycles.
- Provided price support during unwinds, such as in August 2024, which led to a renewed rally.
- Aligned with cooling phases where unrealized gains normalize, allowing stronger hands to accumulate.
We now see Bitcoin touching this mean again in early May 2025, following its retracement from Q1 highs. Glassnode notes this is “a key reset level” that could act as a base for investor confidence if held.
Implications for the Market
Reaching the long-term MVRV mean signals:
- A cooling of euphoria, creating healthier conditions for future growth.
- Potential for accumulation and consolidation, especially if supported by broader macro and technical trends.
- A need for support confirmation: If Bitcoin maintains this level, it may reaffirm the bull cycle structure. If it breaks below, further downside could unfold.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
