As a seasoned crypto investor with years of market observation under my belt, I find myself intrigued by the recent bullish predictions for Bitcoin (BTC). Having weathered multiple market cycles and witnessed the ebb and flow of trends, I can’t help but feel a sense of deja vu. However, the MVRV ratio flipping bullish, coupled with the Bitcoin hash ribbon printing a “buy” signal, does lend credence to the notion that we might be in for another exciting ride.
On the U.S. Election Day, November 5th, Bitcoin (BTC) reached a peak of $69,000. This significant event occurred as a crucial on-chain metric shifted to a bullish stance, implying that the upward trend of BTC toward $120,000 is still active and strong.
Bullish MVRV ratio puts BTC price target at $120K
On November 5th, as market tension arises due to elections, Bitcoin is making an effort to reach its record high from 2022, which was $69,000.
In the present market, where many large-scale factors are at play, CoinLupin – a market analyst from the insights company CryptoQuant – chose to adopt a conventional method. By employing the Market Value Realized Value (MVRV) indicator, he aimed to gauge Bitcoin’s current worth indirectly.
When Bitcoin’s price is currently at around $68,755, an analyst pointed out that the Market Value to Realized Value (MVRV) ratio is 2. This means that the market’s perceived value of Bitcoin is approximately double the estimated value based on its actual transactions on the blockchain.
Additionally, CoinLupin discovered that the MVRM indicator has gone beyond its 365-day median and currently exceeds the 4-year benchmark. This trend tends to signal Bitcoin’s phase in its cycle.
“This suggests that the upward trend remains intact, and generally, the cycle peak tends to occur when the MVRV reaches levels between 3 and 3.6.”
As a researcher, I’m hypothesizing that to maintain a consistent Realized Value (RV), an increment of 43-77% is required in the Market Value to Realized Value (MVRV) ratio. This observation is further explained in the accompanying commentary.
“When applied to Bitcoin, this translates to a target of $95k to $120k.”
In simpler terms, the analyst suggested that if the market goes up due to increased buying activity, it’s reasonable to expect a rise in RV too. If we consider past trends, this increase might peak at levels higher than what we’ve seen before.
“While Bitcoin has risen significantly over the past year, it has only returned to the average level on the MVRV indicator. The upward momentum is still being maintained.”
Concurrently, independent analyst Mags observed that the Bitcoin hash ribbon generated a “buy” signal, implying that Bitcoin might be poised for a robust upward trend in the near future.
Previously, during our examination of X, Mags noticed that the price of Bitcoin was at approximately $67,915. The current market setup suggested a potential rise to around $101,679.
Bitcoin sits on strong support at around $68,000
On November 5th, Bitcoin surpassed a significant threshold as it climbed higher than its current 20-day exponential moving average ($68,221), indicating that the upward momentum may persist and continue the trend.
As of its release, Bitcoin had surpassed a significant threshold that functioned as immediate reinforcement for potential price drops.
Information from IntoTheBlock indicates that about 2.5 million Bitcoin addresses had previously purchased Bitcoin within the price range of $66,700 to $68,730, where the 20-day Exponential Moving Average (EMA) currently resides.
The chart depicting In/Out of Money Around Price (IOMAP) indicates that Bitcoin has a more robust base of support than it does resistance when looking at potential price increases, hinting that the smoothest course for Bitcoin might be upward.
Read More
- LDO PREDICTION. LDO cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- ETH PREDICTION. ETH cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- RUNE PREDICTION. RUNE cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
2024-11-05 17:41