Bitcoin Recovery: Has BTC Prevented A Fall To $41,000 With This Surge?
11 Setembro 2024 - 5:30AM
NEWSBTC
Bitcoin has made some recovery over the past 24 hours, which may
have prevented this deep fall that the asset was previously at risk
of. Bitcoin Has Recovered Back Towards The $57,000 Level Bitcoin
witnessed a plunge a few days ago, but it has started this new week
with bullish momentum, seemingly rejuvenated as its price has
recovered to $57,000. Related Reading: Bitcoin Surges Above
$57,000, But Investors Still Shorting: Fuel For More Rise? The
below chart shows what the coin’s recent performance has looked
like. This 4% jump in the last 24 hours has completely retraced the
price above plummet. Perhaps more importantly, the surge has helped
the asset gain some distance over an important pricing level of an
on-chain model. BTC Hasn’t Yet Lost This MVRV Pricing Band Support
Level In a post on X, analyst Ali Martinez had yesterday discussed
how BTC was retesting a support level part of the MVRV Extreme
Deviation Pricing Bands model. As its name suggests, the model is
based on the popular Market Value to Realized Value (MVRV) ratio.
This indicator tells us how the value held by the Bitcoin investors
(that is, the market cap) compares against the value they put into
the asset (the realized cap). When the ratio has a value greater
than 1, the investors are in a state of net profit. On the other
hand, it being under the threshold implies the dominance of loss in
the market. The MVRV Extreme Deviation Pricing Bands model takes
this metric’s mean value and relates standard deviations (SDs) to
the price of the cryptocurrency. Below is the chart for the model
that the analyst shared yesterday. As displayed in the graph,
Bitcoin had been retesting the $54,200 level yesterday, which
corresponded to the price at which the MVRV ratio would attain the
same level as its historical mean. In the scenario that BTC had
found rejection at this level and had dropped under it, the next
important level from the perspective of the model would have been
$41,100. At this level, BTC’s MVRV ratio would assume a value of
-0.5 SD from its mean. Related Reading: Ethereum Bullish Signal:
Adoption Hits Four-Month High Rate Ali had noted that BTC could
have, therefore, been at risk of facing a correction to this level.
With the recovery in the last 24 hours, though, the immediate
threat of such a drop may no longer loom over the cryptocurrency’s
head. In terms of potential resistance levels ahead, the next
Bitcoin MVRV Pricing Band is located at around $67,400, so there is
still quite a while to go before a retest of it can happen.
Featured image from Dall-E, Glassnode.com, chart from
TradingView.com
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