Bitcoin Breaks $119,000: Analyst Predicts Possible Move to $139,000
An analysis of Bitcoin suggests it could target $139,000 according to the MVRV Extreme Deviation Pricing Bands model.
Key Insights
- The Market Value to Realized Value (MVRV) Ratio compares Bitcoin's market cap to its realized cap, reflecting the profit-loss balance of the network.
- MVRV greater than 1 indicates unrealized gains for investors; below 1 suggests they are underwater.
- The MVRV Extreme Deviation Pricing Bands use standard deviations from the mean MVRV Ratio to determine potential price levels.
Bitcoin recently surpassed the +0.5 SD level at $116,700 and is now targeting the +1 SD level at $138,800. Historically, surges above this band have led to profit-taking selloffs due to increased investor gains.
Current Bitcoin Price Movement
- Bitcoin has experienced a recovery run of nearly 7% in the past week, reaching $119,200.
The market now awaits whether Bitcoin will retest the +1 SD band or if the surge will stall.