Famous Crypto analyst Ali Martinez used the MVRV Extreme Deviation Pricing Bands model to identify immediate and significant Bitcoin (BTC) price levels. In particular, despite news that 90-day tariff suspensions between the US and China have continued to consolidate between $101,000 and $104,000 for most of the week.
Price range: Next resistance is $116,900, with $98,131 support
The Bitcoin MVRV extreme deviation band is a statistical band based on the standard deviation of the MVRV ratio from its historical average. They are tools that help to identify extreme overvaluations and undervaluations in the Bitcoin market and therefore help to point out resistance and levels of 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. Price breaks above this level imply a dangerous overvaluation of BTC prices and an overheating market, suggesting potential profitability.
On the other hand, immediate support for the best cryptocurrency is around $98,131, expressed in the 0.5σMVRV band. Sustained price action beyond this level indicates that Bitcoin remains in the bull rating band. On the other hand, breaking prices below this level suggests cooling momentum or opening the door to a deeper retracement.
Meanwhile, the average MVRV band is $79,361, serving as a fair value anchor. When BTC prices drop to this level, they provide an ideal accumulation opportunity for potential market rebounds. However, the price will lower the MVRV band at -0.5σ ($60,590) and -1σ ($41,820).
Bitcoin holders will have 120% unrealized profits
Other news also shows that Martinez’s MVRV price band chart is currently showing the realised price of Bitcoin at $45,504. With current market prices, this data suggests that the average BTC investor is sitting at a potentially highly dependent profit as high as 120%.
At the time of writing, Bitcoin is trading at $103,529, following a decline of 0.87% in the last 24 hours and 0.10% in the past week amid ongoing market consolidation. However, the best cryptocurrency in the past week has risen 22.62% as bullish forces remain dominated.
Currently, Bitcoin’s next resistance is at $105,000, with a compelling price that exceeds that could rise to another $109,000, to its current all-time high. If BTC successfully destroys both resistance levels, it could enter the realm of price discovery and accelerate the increase towards around $117,000 towards the expected target.
ISTOCK featured images, TradingView chart
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