Analyst Predicts Bitcoin Bull Run: MVRV Metric Hints At $95K To $120K Target

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As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the recent analysis presented by CoinLupin on Bitcoin’s MVRV ratio and its potential implications. The MVRV ratio, which compares Bitcoin’s market value to its on-chain realized value, provides a unique perspective on the cryptocurrency’s current position in the market.

As an analyst, I find myself drawn back into the world of Bitcoin with renewed curiosity. The upcoming significant event – the U.S. election in November – is fast approaching, and its potential impact on this digital currency has me intrigued once more.

A CryptoQuant analyst known as CoinLupin recently provided an analysis on the CryptoQuant QuickTake platform, focusing on Bitcoin’s Market Value to Realized Value (MVRV) ratio, a metric often used to gauge Bitcoin’s value compared to its on-chain fundamentals.

Given the economic uncertainties influencing cryptocurrency markets, CoinLupin recently offered valuable perspectives on how Meaningful Value Ratio (MVRV) could be utilized to assess Bitcoin’s current standing in the market.

MVRV And Historical Cycle Peaks

Currently, the MVRV (Merton’s Value Realized to Value Ratio) stands at about 2. This suggests that the market value of Bitcoin is roughly twice its actual value based on the prices at which all its owners originally purchased it, demonstrating an average purchase price that is higher than the current market price.

Instead of focusing solely on the current MVRV ratio value, it’s more beneficial to notice shifts in trends as they occur over a period, according to CoinLupin’s explanation.

The analyst pointed out that based on the 365-day Bollinger Band analysis, combined with the 4-year average representing Bitcoin’s typical cycles, the MVRV ratio stands higher than its long-term norm and has just surpassed its 1-year moving average.

Based on CoinLupin’s analysis, it appears that Bitcoin’s growth trajectory continues unabated. CoinLupin highlighted the potential impact of Bitcoin’s MVRV levels, especially in relation to previous cycle highs.

In past phases, Bitcoin’s value has historically reached its maximum when the MVRV ratio falls within 3 to 3.6. At the moment, Bitcoin’s MVRV stands at 2, which is not yet in this peak range, but the increasing trend of the MVRV suggests that there might be potential for further growth if past patterns persist.

If the current Realized Value (RV) stays the same, CoinLupin’s calculations indicate that Bitcoin’s price could potentially rise by approximately 43% to 77% in order to attain a Multiple of Realized Value to Market Value (MVRV) ratio ranging from 3 to 3.6.

According to the analysis, we might be looking at a possible price range of $95,000 to $120,000 under favorable market conditions with positive momentum. However, it’s important to note that further growth could occur if new buyers enter the market, which could potentially drive the peak value even higher than the currently estimated levels.

Bitcoin Market Performance

Following multiple weeks and days of steadily gathering strength to break through the $70,000 barrier, Bitcoin has once more dipped beneath this value, hinting that the necessary force may still be lacking to push higher towards greater heights.

Over the last seven days, the asset has dropped approximately 1%. Yet, Bitcoin is now being exchanged at around $68,306, demonstrating a minor uptick of about 1%, with its highest price in the past 24 hours reaching $69,317.

Despite a minor drop in price recently, I’ve noticed that Bitcoin’s daily trading volume has actually risen during this timeframe.

Specifically, data obtained from CoinGecko indicates that the trading volume for Bitcoin over the past 24 hours has grown significantly. Last Monday, it was slightly under $30 billion, but as of today, it’s surpassed $38 billion.

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2024-11-05 04:34