Bitcoin (BTC) hit $69,000 on US Election Day, November 5, as key on-chain metrics reversed strength, suggesting BTC’s $120,000 uptrend “remains intact.”
BTC/USD daily chart. Source: TradingView
A bullish MVRV rate sets the BTC price target at $120,000.
Bitcoin is trying to regain its 2022 all-time high of $69,000 as election uncertainty grips the markets on November 5.
In a market currently affected by numerous macro-related issues, CoinLupin, an analyst at market intelligence firm CryptoQuant, has opted for the traditional approach of indirectly assessing Bitcoin’s current value by utilizing the Market Realized Value (MVRV) indicator.
The analyst said Bitcoin’s price was trading at $68,755, bringing its MVRV to 2, “indicating that the market’s surface value is double its estimated on-chain value.”
CoinLupin also discovered that the MVRV indicator has recently surpassed its 365-day average and is currently above its four-year average, which generally reflects the Bitcoin cycle.
“This means that the upward trend remains intact and the cycle peak tends to occur, typically when the MVRV reaches the 3 to 3.6 level.”
Bitcoin MVRV Rate. Source: CryptoQuant
Assuming Realized Value (RV) remains constant, the MVRV ratio would require an increase of 43% to 77%, the accompanying note added.
“If applied to Bitcoin, the target amount would be $95,000 to $120,000.”
To put this into perspective, the analyst explained that RVs are likely to rise as well as the market rises due to new buying interest, and given previous cycles, could peak above this level.
“Although Bitcoin rose significantly last year, the MVRV indicator only returned to the average level. “The upward trend is still maintained,” he said.
Meanwhile, independent analyst Mags noted that the Bitcoin hash ribbon has printed a “buy” signal, suggesting that BTC could soon see a strong uptrend.
In an initial analysis of
source: mag
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Bitcoin finds strong support at around $68,000.
Bitcoin’s rally on November 5th supported the continuation of the uptrend by surpassing the key level encompassed by the 20-day exponential moving average (EMA), currently at $68,221.
At the time of publication, Bitcoin was trading above this important level, which acts as immediate support.
BTC/USD daily chart. Source: TradingView
According to data from IntoTheBlock, the 20-day EMA is within the range of $66,700 to $68,730, with approximately 1.1 million BTC previously purchased by 2.5 million addresses.
Bitcoin IOMAP chart. Source: IntoTheBlock
The Money Around Price (IOMAP) chart above shows that Bitcoin has relatively strong support relative to upward resistance, suggesting that the path of least resistance for BTC is upwards.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.