Crypto Analyst Says Next Bitcoin Target Is $78,700 If BTC Breaks This Resistance
03 Julio 2024 - 1:00AM
NEWSBTC
An analyst explained that the next target for Bitcoin could be
$78,700 if BTC could cross this resistance level of an on-chain
pricing model. Bitcoin MVRV Extreme Deviation Pricing Bands Put
Resistance At $65,800 In a new post on X, analyst Ali has discussed
some price levels for Bitcoin that could be important based on an
on-chain pricing model. The model is based on the Market Value to
Realized Value (MVRV) ratio. The MVRV ratio is a popular indicator
that, in short, keeps track of the ratio between the value the
Bitcoin investors are holding right now (the market cap) and what
they initially used to purchase their coins (the realized cap).
This metric tells us about the profit/loss situation of the market
as a whole. Related Reading: PEPE Bullish Signal: Whale Withdraws
$14.7 Million Stack From Binance Now, a pricing model called the
MVRV Extreme Deviation Pricing Bands uses standard deviations from
the all-time mean of the MVRV ratio to determine significant price
levels for the cryptocurrency. Below is the chart shared by the
analyst that shows how the levels relevant to this model have
looked recently. The chart’s yellow line in the middle represents
the price level at which the MVRV ratio would become equal to its
all-time mean. At present, this level is equal to around $52,900.
The level above this line, colored in orange, corresponds to +0.5
standard deviation (SD) above the indicator’s mean. Currently, the
cryptocurrency’s spot price is under this mark, implying that the
MVRV ratio’s deviation is smaller than +0.5 SD. Ali notes that this
level, corresponding to +0.5 SD, at about $65,800, is “one of the
most crucial resistance areas” for Bitcoin. The graph shows that
Bitcoin struggled to break above this level during retests in
December 2023 and January 2024. Related Reading: Bitcoin Q3 Rally
Possible As Miner Selloff Finishes, Quant Says The analyst says
that if BTC can break past this resistance, the $78,700 mark,
corresponding to +1 SD from the MVRV ratio mean, could be the next
significant target. Historically, tops in the asset have become
more probable to form when the MVRV ratio has deviated above this
line. The all-time high (ATH) price earlier in the year, which
continues to be the rally’s peak, also occurred soon after the
asset rose above this level. From the current spot price of
Bitcoin, a surge towards this potential target of $78,700 would
suggest an increase of more than 27% for the cryptocurrency. Before
the asset could dream of retesting this level, it would need to
break past the $65,800 resistance. BTC Price Bitcoin surged past
the $63,800 level yesterday but has seen a setback in the past 24
hours, as its price has now dropped to $61,800. Featured image from
Dall-E, Glassnode.com, chart from TradingView.com
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