A new report says Bitcoin (BTC) could rise to $ 15,000 if historical trends are repeated this year.
The report was prepared by Stack Funds for Crypto Index on October 15th and highlights Bitcoin’s market value versus
The report predicts a “big boom” in the MVRV.
Bitcoin has yet to achieve a $ 12,000 hack and attempt to turn down $ 11,700 this week. This did not help analysts who believe that $ 11,000 will provide solid support.
However, in the long run, the period following the US elections in early November may have greater growth potential
For stacking boxes, it depends on the MVRV ratio. It currently stands at 1.8, with indications that a retest of the 2.5 from 2019 when BTC / USD hit $ 13,800 in operation.
“The current MVRV ratio is 1.8 and is well supported by the trend line that Bitcoin accumulated at the end of 2018. The trend also follows the same path it was during the bull run in 2017, with a steady upward slope that tested a matched support line several times,” the report said. .
“Given the strength of the support, we expect a significant breakout of 2.0 in the short term as it appears to be set to test the 2019 peak of 2.5, pushing the bitcoin price back above the $ 15,000 level.”
MVRV is a mathematical process developed by analysts Murat Makhmodov and David Boyle, who is also the creator of Bitcoins Puell Multiple. It uses the market cap against the achieved cap that CoinMetrics has created and is designed to provide a more accurate valuation of Bitcoin than the traditional market value.
Since late 2018, the MVRV has shown a broad upward trend that has only been interrupted by the price crash between Coronavirus in March 2020.
The company’s opinion on additional purchases
Stack also noted that the growing institutional interest in Bitcoin reinforces the notion that the future is optimistic about price action.
Stone Ridge invested $ 115 million following the acquisition of Square with $ 50 million, both of which were to the fore in support of a massive $ 425 million government investment from MicroStrategy.
As Cointelegraph notes, Bitcoin futures are also on the rise this month, indicating that institutional activity is regaining strength again.
The Stacks Report explains: “We are also witnessing a market repositioning with a potential change in the economic climate as futures and open interest volumes begin to recover.”
“Our eyes are turning to the key resistance level of $ 12,000 as we expect further consolidation around current levels before the election before we enter into a possible upside in the future.”