Bitcoin Pricing Bands Suggest Potential Target of $117,000 – Insights Inside
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Notable crypto analyst Ali Martinez has highlighted key Bitcoin (BTC) price levels using the MVRV extreme deviation pricing bands model. Interestingly, the leading cryptocurrency has remained stable within the $101,000 – $104,000 range for most of the week, even amid reports of a 90-day tariff pause between the US and China.
Pricing Bands: Upcoming Resistance at $116,900, Support at $98,131
The Bitcoin MVRV extreme deviation bands are statistical ranges derived from standard deviations of the MVRV ratio relative to its historical average. They are useful for identifying extreme overvaluation or undervaluation in the Bitcoin market, thus serving as effective tools for pinpointing resistance and support levels.
According to the chart shared by Ali Martinez on May 16, Bitcoin’s next significant resistance is identified at $116,901, coinciding with the +1σ (standard deviation) MVRV band. A price surge beyond this threshold would suggest a risky overvaluation of BTC, indicating an overheated market ripe for profit-taking.
Conversely, Bitcoin’s immediate support is situated around $98,131, represented by the 0.5σ MVRV band. A consistent price performance above this level would signal that Bitcoin remains in a bullish valuation area. On the flip side, a dip below this threshold would indicate decreasing momentum or potentially lead to larger retracements.
Meanwhile, the mean MVRV band is at $79,361, acting as a fair value benchmark. If BTC prices were to drop to this point, it could represent an ideal accumulation opportunity for a prospective market rebound. However, declines to lower MVRV bands at -0.5σ ($60,590) and -1σ ($41,820) would signal bearish retracements and signify cycle bottoms, respectively.
Bitcoin Holders Experience 120% Unrealized Gains
In addition, Martinez’s MVRV pricing bands chart indicates that Bitcoin’s realized price currently stands at $45,504. Given the current market price, this suggests that the average BTC investor could be enjoying significant unrealized gains of up to 120%.
As of now, Bitcoin is trading at $103,529, reflecting a 0.87% decrease over the last 24 hours and a 0.10% decline in the past week during ongoing market consolidation. However, Bitcoin has risen by 22.62% in the past week, with bullish forces still prevailing.
Currently, Bitcoin’s next resistance level is set at $105,000; a significant price closure above this point could trigger further increases towards the existing all-time high of around $109,000. If BTC manages to break through both resistance levels, it may enter price discovery territory, potentially accelerating its trajectory toward a target around $117,000.
BTC is trading at $103,569 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from iStock, chart from Tradingview
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