Bitcoin (BTC) Could Surge to $112,000 If It Breaks and Holds Above This Level

Using Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands, Martinez pointed to two crucial price levels

Crypto analyst Ali Martinez has identified a key price level that could determine Bitcoin’s (BTC) next major move, potentially sending the flagship cryptocurrency soaring to $112,000.

In an X post yesterday, the analyst used Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands to highlight two crucial price levels.

According to the analyst, if BTC breaks and stays above $94,000, it has a “high probability” of rallying to $112,000. However, if BTC falls below $76,000, it risks plunging to $58,000, or even $44,000, as market conditions turn bearish.

“If BTC breaks and stays above $94k (orange box), then it has a high probability of continuing to rally to $112k. But if BTC falls below $76k (green box), then it risks cascading lower to $58k, maybe even $44k as market conditions turn bearish,” said the analyst.

Notably, BTC hit $76,606 on March 10 before recovering to the low $80,000 range.

What Are MVRV Pricing Bands?

MVRV Extreme Deviation Pricing Bands indicate whether an asset is priced too high or too low compared to its past averages. It helps identify when the market might be overbought – potential market top – or oversold – potential buying opportunity.

According to the analyst’s chart, BTC is currently trading between the mean – yellow band – and +0.5 standard deviation – orange band. A sustained breakout above or below these bands could indicate Bitcoin’s next significant price direction.

As seen in the above chart, BTC’s price action closely follows the MVRV Bands, suggesting that this indicator could be a valuable tool for traders. A breakout or breakdown of these bands could be a key factor to watch out for in the coming weeks.

Bitcoin Remains In A Crucial Support Level

Meanwhile, another crypto analyst, Rekt Capital, says that Bitcoin is retesting the crucial $84,000 support level. A successful hold at this price could set BTC up to challenge the $94,000 resistance, paving the way for a new all-time high.

“BTC has produced Long Wicks below this level before which is why a Daily Close above $84k is essential for this retest to be successful. A break of $94k (grey) would put the next resistance at $104k (not pictured). A new ATH is quickly approaching,” the analyst noted.

Will BTC Witness A Short Squeeze?

In a separate X post, crypto trader Merlijn The Trader suggests that widespread pessimism around BTC’s recent price action might fuel a powerful short squeeze.

According to the analyst, roughly $2 billion worth of short positions could be liquidated if BTC manages to break above $87,000, potentially driving the price even higher.

“People are so incredibly pessimistic on BTC now that the potential for a short squeeze is massive. Roughly $2B in shorts will get liquidated if BTC manages to break $87k,” the trader stated.

Adding to the bullish outlook, crypto entrepreneur Arthur Hayes suggests that BTC’s March 10 drop to $77,000 may have marked the bottom of this market cycle.

At the time of writing, BTC is trading at $84,043, down 2% over the past 24 hours.