A Bitcoin price model that uses an indicator on the blockchain suggests that $77.600 could be the point where this asset reaches its peak. next peak.
Bitcoin’s MVRV pricing bands could provide clues about what comes next
It’s a brand new world post On X, Ali talked about what the MVRV (Market Value to Actual Value) Price Bands Model could tell us about cryptocurrency’s potential.
You can also find out more about the following: MVRV ratio It is an on-chain indicator which compares Bitcoin’s market capital. realized cap. The first is the value of the asset as it is currently priced, while the second is a formula that determines its cap by using the assumption the “true” Value of any coin that is in circulation can be determined by its last transfer price on blockchain.
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The price of a coin at the time that it was transferred is its cost basis. As a result, the realized caps keeps track of each investor’s cost basis.
The MVRV is a ratio that compares the market capitalization (market cap) of the investor to the realized capitalization (realized cap).
Glassnode, a firm that provides on-chain analysis services, has created a model of pricing bands based on this indicator. This chart shows how these bands are structured.
In this model, the pricing bands correspond to levels that represent a certain deviation from the average for the MVRV. The chart shows that cryptocurrency prices are currently higher than the current price, which corresponds to +0.5 SD from the average for this indicator.
The MVRV would then be at +0.5 SD over its average around the $65,100 price point. This is the next The major price band for this model is currently +1 SD which equates to approximately $77,600.
BTC has formed local tops at this level in the past. In the graph below, it is clear that BTC has reached a new high. rally top BTC’s previous level was broken in March.
“Based on the MVRV Pricing Bands, if Bitcoin continues to trade above $65,125, the next local BTC top before a brief correction could be around $77,593!” The analyst notes.
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The current price for bitcoin would increase by more than 11 percent if the currency were to reach a new high. The price of the cryptocurrency will continue to develop and it remains to be determined if the currency will maintain its current level above +0.5 SD-MVRV.
BTC Price
Bitcoin appears to be losing its bullish energy since the sharp increase earlier. It has been moving sideways around the $69,000 mark.
Chart from TradingView.com. Image from Unsplash.com.
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Source: www.newsbtc.com