Bitcoin is currently trading at $11,336 after a significant bullish breakout on October 8 above $11,000. Recent news about big companies buying large sums of the digital asset has sparked a new bull rally.
Just recently, Square, co-founded by Jack Dorsey, the CEO of Twitter, announced the purchase of $50 million worth of BTC. Days later, Stone Ridge, a multi-billion dollar asset management company released a statement of the purchase of $115 million worth of Bitcoin, around 10,000 BTC coins.
The MVRV metric points towards $15,000 for Bitcoin
According to a recent report released by Stack Funds, the MVRV ratio, calculated by dividing the market capitalization by the realized cap, shows a lot of support which could put Bitcoin around $15,000.
“Bitcoin had a massive rally this week as it broke out and closed above multiple key levels that traders were eyeing. However, the same could not be said about its physical asset counterpart gold which is lagging its digital version over the past week.“
The report also discusses the recent interest in Bitcoin from large entities, like the ones we mentioned above. Additionally, it seems that the MVRV for Bitcoin is in an uptrend that only went south in March 2020.
This metric shows a strong uptrend for Bitcoin and a similar trajectory like the one we saw back in 2017, right before the massive bull run to $20,000.
What’s Bitcoin’s Short-Term Trajectory?
If we look at the daily chart, we can observe that there are virtually no resistance levels until $12,000.
The IOMAP chart provided by IntoTheBlock actually shows the same. The range between $11,547 and $11,895 seems to be the most problematic with 715,340 BTC in volume. Beyond this point, the resistance areas are virtually non-existent.
Considering the robust uptrend on the daily chart, it wouldn’t be a surprise to see Bitcoin test $12,000 within the next few days and potentially the 2020-high at $12,500.