Bitcoin (BTC) hit $69,000 on the day of the US election on November 5 as a key onchain metric reversed bullish bias, suggesting BTC's uptrend towards $120,000 "remains intact."
BTC/USD daily chart. Source: TradingView
Rising MVRV Ratio Sets BTC Price Target at $120K
Bitcoin is trying to reclaim its 2022 all-time high of $69,000 as election worries grip the market on November 5.
In a market currently plagued by multiple macro-related issues, CoinLupin, an analyst at market intelligence firm CryptoQuant, has opted for a traditional approach, using the market value realized value (MVRV) metric to indirectly gauge Bitcoin's current value.
With Bitcoin trading at $68,755, MVRV stands at 2, “suggesting the market’s surface value is double the estimated onchain value,” the analyst said.
CoinLupin also found that the MVRV index recently crossed above its 365-day average and is now above its 4-year average, which typically reflects Bitcoin's cycle.
“This suggests that the uptrend is still intact and generally, cycle tops tend to occur when MVRV reaches levels between 3 and 3.6.”
Bitcoin MVRV Ratio. Source: CryptoQuant
Assuming constant realized value (RV), a 43-77% increase is required for the MVRV ratio, the accompanying commentary added.
“When applied to Bitcoin, this translates into a target of $95,000 to $120,000.”
To put this into perspective, the analyst explains that as the market rises with new buying interest, it is likely that RV will also rise and tops may be formed above these levels when previous cycles are considered.
“While Bitcoin has rallied significantly over the past year, it has only returned to the mean on the MVRV index. The momentum is still there.”
Meanwhile, independent analyst Mags noted that the Bitcoin hash ribbon has printed a “buy” signal, suggesting that BTC could soon make a strong bullish move.
In a previous analysis on X, Mags spotted Bitcoin trading at $67,915, with the market setup expected to extend to $101,679.
Source:Mags
Bitcoin Holds Strong Support Around $68,000
Bitcoin’s price surge on November 5 saw it rise above a key level accepted by the 20-day exponential moving average (EMA), currently at $68,221, supporting the continuation of the uptrend.
At the time of publication, Bitcoin was trading above this important level, acting as immediate support.
BTC/USD daily chart. Source: TradingView
The 20-day EMA is in the range of $66,700 to $68,730, where around 1.1 million BTC was previously purchased by 2.5 million addresses, according to data from IntoTheBlock.
Bitcoin IOMAP chart. Source: IntoTheBlock
The In/Out of the Money Around Price (IOMAP) chart above shows Bitcoin sitting on relatively strong support compared to the resistance it faces on the upside, suggesting the path of least resistance for BTC is up.
