On the 28 of November 2022, Willy Woo, released an MVRV ratio as a deep dive guide for users hoping to buy the current Bitcoin dip.
Here's the 3rd in my series of macro bottom charts…
MVRV ratio is deep inside the value zone.
Under this signal we were in already bottoming (1) until the latest FTX white swan debacle brought us back into a buy zone (2). pic.twitter.com/WjmOM6EJMK
— Willy Woo (@woonomic) November 28, 2022
The MVRV chart model was created by Puell and Murad. It is aimed at using the market value of bitcoin in circulation with the actual realizable value of bitcoin transactions and then plotting an average Z-line that gives a feel of the overall buy-and-sell cycle of the assets.
This is the third of a couple of macro floor models released by Willy Woo, which can be used ONLY as a guide Since all models break.
The guide shows the multiple past cycles of Bitcoin in an attempt to predict the future using the data provided by Glassnode. It accommodates the assets in circulation and the assets in the Grayscale trust fund.
His previous charts show that BTC is approaching the bottom in his Max Payne model, and now, the third and final macro bottom chart shows that BTC is currently deep in its buy phase. Because of the FTX debacle, the leg-up trends previously seen have been reversed. Now with the bitcoin MVRV value deep in the red, he believes now is the best time to buy BTC.
And to wrap it all up, he concludes with a perfunctory statement, saying the charts are to be used at each person’s discretion, as the past cycles do not necessarily control future outcomes.
The analysis was met with mixed responses. Some users call Willy out as a fraud, causing people to lose their hard-earned funds. And others simply believe that anytime bitcoin is under $20K, that is the best time to buy in.