As Bitcoin (BTC) surged past $70,000 again on November 5 US election day, analyst CryptoQuant argued that BTC could continue its uptrend towards $120,000.
CryptoQuant analyst with the pseudonym CoinLupin used the Bitcoin MVRV indicator and stated that the BTC price could reach between $95,000 and $120,000.
Noting that the MVRV indicator is currently at level 2, the analyst also said that the MVRV indicator recently crossed the 365-day average and is currently above the 4-year average that typically reflects Bitcoin's cycle.
“MVRV recently crossed above the 365-day moving average. This suggests that the uptrend remains intact and that the cycle peak generally tends to occur when MVRV reaches levels between 3 and 3.6.
Assuming Realized Value (RV) remains constant, a 43-77% increase in MVRV is required for Bitcoin to peak.
When this increase is applied to the Bitcoin price, this implies a target of $95,000 to $120,000.”
The analyst finally argued that although Bitcoin has risen significantly in the past year, with this rise only the MVRV indicator has returned to the average level, the upward momentum in BTC is still valid and the rise will continue.
*This is not investment advice.
