In a recent X post, veteran crypto analyst Ali Martinez pointed out that, according to price band analysis, Bitcoin (BTC) could potentially soar to $112,000 if it successfully breaks and maintains its position above a critical level.
Analyst Highlights Crucial Bitcoin Level
After a slight increase following the US Federal Reserve’s announcement to decelerate its balance sheet reduction, Bitcoin is currently hovering in the low $80,000 range. Martinez believes that the premier cryptocurrency could achieve a new all-time high (ATH), depending on certain circumstances.
Employing Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands, Martinez referred to two significant price levels that could dictate Bitcoin’s next substantial movement. He asserts that if BTC surpasses and holds above $94,000, it has a ‘high probability’ of surging to $112,000.
Conversely, if BTC drops below $76,000, it faces the risk of plummeting to $58,000—or possibly $44,000—if the market turns bearish. It’s worth noting that BTC previously reached $76,606 on March 10 before bouncing back to its current range in the low $80,000s.
For those unfamiliar, MVRV Extreme Deviation Pricing Bands assess whether an asset, like Bitcoin, is priced excessively high or low compared to its historical averages. This tool helps identify possible overbought conditions—indicating a potential market peak—or oversold conditions—suggesting a potential buying opportunity.
According to Martinez’s analysis, BTC is currently trading between the average—represented by the yellow band—and +0.5 standard deviation—denoted by the orange band. A sustained breakout above or below these levels could signal Bitcoin’s next major price movement.
Another crypto analyst, Rekt Capital, indicated that Bitcoin is currently re-testing the pivotal $84,000 support level. A successful hold at this price could position BTC to challenge the $94,000 resistance, potentially leading to a new ATH. The analyst mentioned:
BTC has demonstrated long wicks below this level in the past, which is why a Daily Close above $84k is critical for this retest to succeed.
Could BTC Experience a Short Squeeze?
In another recent X post, crypto trader Merlijn The Trader proposed that the prevailing negativity around BTC’s recent price trends might trigger a significant short squeeze. The analyst suggested that approximately $2 billion worth of short positions could be liquidated if BTC reaches $87,000—potentially propelling the price even higher.
Boosting the bullish sentiment, crypto entrepreneur Arthur Hayes posited that BTC’s dip to $77,000 on March 10 may have signaled the bottom of this market cycle. At the time of this report, BTC is trading at $84,043, down 2% over the last 24 hours.
