A Bitcoin analyst explains the future of Bitcoin “likely rise to test” If BTC is able to hold this level, it will be 79.600 dollars.
The next Bitcoin MVRV pricing band is currently valued at $79,600
It’s a brand new world post Ali Martinez discussed BTC on X. next The pricing of a destination can be calculated using an “on-chain” model. This model is based on the “Market Value to Realized Value” (MVRV) indicator.
The market capitalization tells us the current value of Bitcoins that investors have (the total amount invested). realized cap).
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If the indicator value is higher than 1, this means the investors as a group are making a profit. The MVRV is less than the threshold, which means that the market as a whole has a negative value.
This metric is used in a few pricing models, but for the purposes of our discussion the “MVRV extreme deviation pricing bands” Are of interest.
The standard deviations of this model around the MVRV means indicate the price levels relevant. The chart below shows what these current Bitcoin levels look like.
As the graph shows, Bitcoin is currently trading above the +0.5σ pricing band. At the price level corresponding to this 0.5σ level ($66,800 right now), BTC’s MVRV value becomes 0.5 standard deviations above its mean value.
This model explains how the next level of interest is the +1σ, where the MVRV is 1 standard deviation over its mean. This ratio is satisfied by a $79,600 price.
Histoically, the tops of the crypto market have formed whenever the price crosses past the MVRV band. On the chart it is clear that BTC has surpassed the MVRV pricing band earlier this year, when it achieved its all-time record high. This continues to be the highest point of the rally.
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Ali suggests that if Bitcoin can continue to hold above $66,800 (the +0.5σ pricing band level), the asset will “likely rise to test the 1.0σ pricing band at $79,600.” BTC’s current price would increase by more than 14 % if it were to reach this potential level.
Why do tops tend to be more probable to happen above the +1σ MVRV pricing band? It could be because when MVRV reaches such high values, investors have made substantial profits and are therefore more inclined to take part in an event. mass selloff.
BTC Price
Bitcoin witnessed a retest of the +0.5σ pricing band earlier, but the level has continued to hold so far, as the coin has rebounded to $69,500 since then.
Charts from TradingView.com and Glassnode.com. Featured Image: Dall-E.
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Source: www.newsbtc.com