Cryptocurrency analyst Ali Martinez has recently shared insights on how Bitcoin could potentially reach $139,000 based on the MVRV Extreme Deviation Pricing Bands model. This model utilizes the Market Value to Realized Value (MVRV) Ratio, which compares Bitcoin’s market cap against its realized cap to gauge investor profitability.
The MVRV Ratio indicates whether investors are sitting on unrealized gains or losses. When the ratio is above 1, investors are in profit, while a ratio below 1 suggests they may be underwater. The MVRV Extreme Deviation Pricing Bands model calculates standard deviations from the mean MVRV Ratio to determine price levels.
Currently, the mean of the MVRV Ratio stands at $94,650 in the model. Bitcoin recently surpassed the +0.5 SD level of $116,700, indicating a potential move towards the +1 SD level at $138,800. Historically, Bitcoin has experienced price peaks after crossing this threshold, as investors tend to engage in profit-taking selloffs at higher gains.
The recent recovery in Bitcoin’s price has seen a 7% increase over the past week, bringing it to $119,200. The chart analysis suggests a possible retest of the +1 SD band at $139,000, but whether Bitcoin will reach this level or experience a pullback remains to be seen.
As the cryptocurrency market continues to evolve, the MVRV Extreme Deviation Pricing Bands model provides valuable insights into potential price targets for Bitcoin. Investors and traders will be closely monitoring Bitcoin’s movements to capitalize on potential opportunities in the market.