Popular crypto analyst, Ali Martinez, posted a viral Bitcoin chart on X, formerly Twitter, last night. He predicted that the local top for the BTC price might be at around $85,300 based on the MVRV Deviation Pricing Bands.
The MVRV Deviation Pricing Bands help traders identify potential market tops and bottoms through various deviation levels. Currently, Bitcoin trades at $75,638, positioning itself between two crucial bands: the +0.5σ level at $71,489 and the +1.0σ level at $85,363. This placement suggests Bitcoin is in an increasingly overvalued territory, though not yet at extreme levels.
Looking at the current market structure, the Bitcoin price needs to maintain support above $71,489 to sustain its upward momentum. This level serves as a critical foundation for any potential push toward the anticipated local top. The realized price, currently sitting at $33,354, remains significantly below the trading price, indicating that Bitcoin is trading at a premium compared to its on-chain cost basis.
If Bitcoin maintains its current trajectory, the +1.0σ level at $85,363 could act as a significant resistance point. Historical price action around these deviation bands suggests that when Bitcoin reaches this upper band, it often experiences a pullback as traders take profits.
However, traders should note that if the BTC price loses the $71,489 support level, it might test lower deviation bands. The mean level (0σ) at $57,615 could serve as a mid-level support in such a scenario. A drop below this mean level might indicate a potential bearish reversal or extended consolidation period.
Read also: Where is the Shiba Inu (SHIB) Price Headed Next?
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