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October 30, 2020
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Bitcoin: price may rise after US elections

According to a recent forecast, the price of bitcoin after the American elections could rise to $ 15,000.

The forecast comes from a report published today by Stack Funds, which analyzes in particular the price variations of BTC in relation to the so-called MVRV, that is, Market Value for Realized Value.

The hypothesis is that the price of Bitcoin may soon break the $ 12,000 resistance and rise to $ 15,000 after the American elections that will take place in just over two weeks, on November 3, 2020.

That assumption appears to project historical trends in the coming weeks and could become a reality if the price manages to break the $ 11,700 barrier by the end of this week.

At this point, the level of support would be around $ 11,000.

Bitcoin future price

At the moment, the MVRV ratio is at 1.8, but according to the Stack Funds report, it could rise to 2.5, the same level reached in mid-2019, when bitcoin exceeded $ 13,000.

In the long run, the report notes that since the end of 2018, the MVRV has had a long upward trend interrupted only by the collapse of global financial markets in mid-March this year.

MVRV is a metric created by analysts Murad Mahmudov and David Puell, also creator of Bitcoin’s Puell Multiple, and compares market capitalization to realized capitalization, a metric created by CoinMetrics to provide a more accurate assessment of the price of bitcoin.

The Stack Funds report states that the current MVRV level, 1.8, is presumably well supported by the trend line in which bitcoin price reached recent lows in late 2018. This trend is outlining a trajectory similar to the 2017 bull run. , with a constant tendency for growth.

They write:

“Given the strength of the support, we expect a significant 2.0 break in the short term, as it appears to be retesting the 2019 peak at 2.5, which will put Bitcoin’s price above the $ 15,000 level.

Our eyes are on the $ 12,000 resistance level, as we expect further consolidation around the current levels that go to the elections, before going on the positive side going forward ”.

The election results, however, do not appear to have a significant impact on this dynamic.

Source: cryptonomist

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