Bitcoin (BTC) has support to climb to $ 15,000 if historical trends repeat this yearsays a new report.
Compiled by the Crypto Index Fund Provider, Stacking FundOn October 15th, eThe report highlights Bitcoin’s market cap versus Realized Capitalization Rate (MVRV), which drives earningswhich could smash the resistance at $ 12,000.
Report expects “significant outbreak” in MVRV
Bitcoin has yet to attempt a breakout of $ 12,000, with a decline of $ 11,700 this week. This hasn’t diminished optimism among analysts, who believe $ 11,000 will provide solid support.
In the future, however The time after the US elections in early November could lead to further upward movements.
With accumulated funds, this depends on the MVRV quota. This is currently at 1.8with evidence that a retest of 2.5 has been in play since 2019 when the BTC / USD pair hit $ 13,800.
“The current MVRV ratio is 1.8 and is reportedly well supported by the trend line where Bitcoin bottomed out in late 2018. The trend also shows a similar development to the 2017 bull run.with a steady growth tendency with an identical support trend line tested multiple times, ”the report says.
“Given the strength of the support, we expect a sharp breakout of 2.0 in the near term as the 2019 high is set to be retested at 2.5, which will push the price of Bitcoin above the $ 15,000 level.”
MVRV is a metric developed by analysts Murad Mahmudov and David Puell, also creator of Bitcoin’s Puell Multiple. Uses market capitalization versus realized capitalizationThe latter was developed by CoinMetrics and offers a more accurate valuation of Bitcoin than traditional market capitalization.
Since the end of 2018 MVRV is on a broad uptrend, interrupted only by the drop in the price of the assets crossed by coronavirus in March 2020.
Bitcoin MVRV Ratio highlights uptrend. Source: Stack Funds / CoinMetrics
Corporate buyers raise the mood
Stack also pointed to the growing institutional interest in Bitcoin to cement the idea that the future is firmly optimistic for price movements.
Stone Ridge invested $ 115 million after purchasing $ 50 million from Squareand both became known thanks to MicroStrategy’s increased treasury investment of $ 425 million.
As Cointelegraph noted The open interest for Bitcoin futures is also increasing this month, indicating that institutional activity is recovering.
“In addition, we see a repositioning of the market with a possible change in the economic climate as futures volume and open interest gradually rebound.”explains the batch report.
“Our eyes are wide open at the important resistance level of $ 12,000 as we expect further consolidation at current levels ahead of the elections before moving higher in the future.”