Safe Zone — September 14

Chart of the Day

A useful on-chain indicator to look at when gauging overall market trend is the market value to realized value ratio (MVRV). Simply put, the MVRV identifies periods when Bitcoin is over or undervalued relative to its “fair value”. When the ratio is below 1, the sentiment is down because the market is trading at a loss. As the ratio increases, the potential profit grows and in turn, the sentiment could become overheated. Ecoinometrics identifies 2.2 as the value where the market operates at a profit yet the sentiment remains relatively neutral. According to their research, the “golden region”, where positive returns and greed strike a balance, lies between the 2 to 3 range. If the value moves beyond 5, then the market could very likely enter an extremely overheated territory where corrections are expected within 30 days that follow. Looking at the chart, the current MVRV value seems to be sitting squarely in the safe zone.

Talk of the Town

A press release from what appeared to be Walmart announcing the retail giant’s intention to accept Litecoin was picked up by a number of trusted news platforms. The price of LTC soared more than 20%, before whipsawing back south following the refutation of the press release’s authenticity.