According to cryptocurrency index fund Stack Funds, bitcoin can rise to USD 15,000 (EUR 12,818) if it repeats its historical trends. Stack Funds relies on the market cap vs. realized cap ratio (MVRV) indicator. This indicator would indicate that bitcoin will soon break with the resistance of $12,000 (€10,252).
What is the MVRV?
MVRV is a metric devised by analysts Murad Mahmudov and David Puell. It uses the total market value of bitcoin in relation to the realised market value. The total market value is the value per bitcoin multiplied by the number of coins. The realised market value looks at the price of all bitcoins at the moment they were last moved.
The ratio between these two values gives you a good idea Bitcoin Storm of the momentum of the market. If the MRVR indicator rises, this is a bull market. A falling MRVR indicator indicates a falling market, a bear market.
Soon bitcoin will break with the resistance
This week, bitcoin has made no attempt to break through $12,000, as the counter stopped at $11,700 (€9,996). This has not led to pessimism on the part of analysts who believe that USD 11 000 (EUR 9 400) will remain solid support.
According to some analysts, the post-election period in the United States at the beginning of November could lead to more upward pressure.
Analysts of cryptocurrency index fund Stack Funds believe that this will depend on the MVRV ratio. It currently stands at 1.8 and looks set to rise to 2.5:
„The current MVRV ratio stands at 1.8, and is reportedly well supported by the trend line where bitcoin went back down at the end of 2018. The trend is the same as in 2017 during the bull run, with a regular growth trend that tested an identical trend line several times“.
Stack Funds even dares to make a prediction: „Given the strength of the support, we expect a significant breakthrough of 2.0 in the short term, which will bring the Bitcoin price above $15,000 (€12,818)“.