A group of analyzes suggest that Bitcoin still has more upside… Get to know it
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Answer A group of analyzes suggest that Bitcoin still has more upside… Get to know it
Charles Edwards, founder of Capriole Investments, tweeted that he monitors Bitcoin activity and metrics that can provide signals of major market movements.
On October 18, Edwards noted in a tweet with a graph of the “MVRV z-score” indicator, the latter being used in blockchain analysis to identify periods when Bitcoin is too high or undervalued relative to its fair value.
The MVRV indicator reveals the upcoming bullish trend:
This scale and index was created by Murat Mahmudov and David Boyle by dividing market value by realized capitalization to identify when prices are below their fair value.
Whereas, “Z-Score” is a standard deviation test that pulls extreme data between market value and realized value.Read:Report: “Facebook” sets the date for the launch of its digital currency
Historically every time MVRV z-Score 3.0 was retrieved, # bitcoin The price of the parabola rose for the next 1-2 months.
Bitcoin just restored 3.0 pic.twitter.com/luCBnubYIs
– Charles Edwards (@caprioleio) October 18 2021
The last time the “MVRV z-Score” crossed the 3 level was in late 2020, before Bitcoin broke its previous all-time high of $20,000 and the price then rose to $65,000 four months later.
This happened three times during the 2017 bull run which saw Bitcoin print several new all-time highs.
It also happened in 2014, which witnessed its peak at the time, and the same thing happened during 2011.
MVRV hikes have coincided with these cycle peaks on five previous occasions, so if it continues to climb, there could be more hikes in the next few months.
Order status and flow:
Another price forecasting model is also on the right track and hinting at further gains.
The demand and flow model measures the relationship between supply production and the current stock available, and basically calculates the value of bitcoin based on the scarcity factor.Read:Find out about Bitcoin reserves on Binance and the supported percentage?
This model is one of the famous models behind the account called “PlanB” on Twitter that succeeded in predicting the price of Bitcoin in August and September 2021.
An update published by PlanB on October 18 states that prices have returned to the blue area in the image shown below, which is the middle band of the ascending curve.
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– PlanB (@100 trillion USD) October 18 2021
The model predicts an average price of around $100,000 for bitcoin with this cycle although actual prices could range much higher or lower.
The analyst previously mentioned that the pattern indicates that the second phase of this upward trend has not yet been achieved.
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