A new report says Bitcoin has support to climb to $ 15K if historical trends repeat this year.
The report expects MVRV to "make a significant breakthrough"
Bitcoin has yet to break $ 12K, due to being rejected at $ 11,700 this week. However, that development does not detract from analysts' optimism with a belief that $ 11,000 provides solid support.
At the same time, in the coming months, the period after the US Presidential election in early November could lead to more volatility.
For Stack Funds, this depends a lot on the MVRV rate, currently at 1.8, and there are signs that the 2.5 retest is coming from 2019, when BTC / USD reached $ 13,800. The report states:
“The current MVRV rate is 1.8 and well supported by the trend line where Bitcoin bottomed out at the end of 2018. The trend is also drawing a similar trajectory as it happened during the 2017 bull run, in which dynamic The steady upward move has repeatedly tested the same support trend line. With strong support, we are expecting a significant breakout of 2.0 in the near term as it looks set to retest (retest) a 2019 high of 2.5, bringing Bitcoin price above $ 15K. .
MVRV is the metric invented by analysts Murad Mahmudov and David Puell, who are also the creator of Bitcoin's Puell Multiple index. MVRV uses market cap versus real capital generated by CoinMetrics, to price Bitcoin more accurately than traditional market cap.
Since the end of 2018, MVRV has been in a wide uptrend and was only broken when assets plunged due to the Corona virus epidemic in March 2020.
Organizers increased buying Bitcoin with a positive sentiment
Stack also notes a growing institutional interest in Bitcoin with a sure future price sentiment.
Stone Ridge invested $ 115 million after Square bought $ 50 million, both of which were noticed by MicroStrategy's more than $ 425 million investment.
Bitcoin futures OI is also on the rise this month, signaling an increase in institutional activity once again. The Stack report explains:
“We think repositioning is happening in the market with possible changes in this economic environment, as futures and OI volumes begin to recover. We watch key resistance at $ 12K, as we anticipate further consolidation around the current levels during the election and a subsequent bullish breakout. ”
Everything is possible, especially with the current climate and the political uncertainty. These are things that, traditionally, make people turn away from saving their money in the banks. Gold and Bitcoin will probably profit from that.