Ali Martinez, a well-known crypto analyst, used the MVRV extreme deviation pricing band model to determine the direct important Bitcoin (BTC) price level. It is worth noting that despite a 90-day tariff pause between the U.S. and China, the total merger is still consolidating between $101,000 and $104,000 for most of the week.
Pricing Band: Next Resistance is $116,900, Support $98,131
The Bitcoin MVRV extreme deviation band is a statistical band based on the standard deviation of the MVRV ratio and its historical average. They help identify extreme overvalues and undervalues in the Bitcoin market and are therefore useful tools to point out levels of resistance and support.
According to a chart presented by Ali Martinez on May 16, Bitcoin’s next major resistance is $116,901, consistent with the +1σ (standard deviation) MVRV band. A price drop above this level will indicate a high overestimation of BTC prices and an overheated market overestimation, suggesting the potential for profit acquisition.
On the other hand, the Prime Minister’s instant support for cryptocurrencies is about $98,131, represented by the 0.5σMVRV band. Continuing price action above this level will indicate that Bitcoin is still bullish on the valuation zone. On the other hand, a price drop below this level will suggest cooling momentum or opening the door to a deeper backtrack.
Meanwhile, the average MVRV band is $79,361, which is the anchor of fair value. If BTC prices drop to this level, it will bring ideal accumulation opportunities for potential market rebounds. However, the MVRV bands that drop to -0.5σ ($60,590) and -1σ ($41,820) represent bearish retracement and loop bottom, respectively.
Bitcoin holders sit on 120% unrealized gains
In other news, Martinez’s MVRV pricing band chart also shows that Bitcoin’s realization price is currently $45,504. With current market prices, these data suggest that average BTC investors are located on the potential of up to 120% unrealized huge returns potential.
At the time of writing, Bitcoin has fallen by 0.87% in the past 24 hours, and the 0.10% trading price in the ongoing market merger is $103,529. However, the premier cryptocurrency has grown 22.62% over the past week as bullish forces remain dominant.
Currently, Bitcoin’s next resistance is $105,000, with a convincing price of more than $105,000, which could prompt the current all-time high around $109,000. If BTC successfully breaks through both resistance levels, it will enter the price discovery realm and has the potential to accelerate the growth of the projected target, about $117,000 around.
Featured images from Istock, charts for TradingView
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