It is not new that politics affects the price of goods and raw materials, but also on the value of FIAT currencies, and according to a report it could have its influence on the price of the Bitcoin. According to a recent forecast, in fact, after the US elections close, the price could break its resistance level and reach 15 thousand dollars.
The forecast has been entered within a report which was published by Stack Funds, a company that analyzes the changes in the price of Bitcoin in relation to the Market Value to Realized Value. According to their hypothesis, therefore, the resistance equal to 12 thousand dollars would be broken and reached 15 thousand, practically in about two weeks, given that the elections will be held on 3 November. This hypothesis would bring Bitcoin back to a rise that has not been seen for a while, given that at this time the support level is around $ 11.
At the moment the ratio with the MVRV is 1,8, but according to what reported by the Stack Funds report, a level of 2,5 could be reached, which is the same level that was reached in mid-2019, when Bitcoins were trading 1 to 13 thousand dollars.
The report that studied the long-term trend said that towards the end of 2018 MVRV had a long uptrend, which was stopped. only from the collapse of the financial markets which happened in the middle of this year. The MVRV metric was devised by two analysts who also created the Puell Multiple Bitcoin, and which serves to compare the market cap with the values of the realized cap, in order to evaluate more accuracy the price of Bitcoin.
The Stack Funds report also states that the current level of the MVRV index at 1,8 is presumably optimally supported by the trend line on which the Bitcoin price hit its lows towards the end of 2018. This trend expects a trajectory similar to that of the 2017 Bullrun, with an inclination towards growth.
Finally, in the report they stated that given the support strength, a break of 2,0 is expected over the short term, as it appears to repeat the peak seen in 2019 and that will bring the Bitcoin to a value of 15 thousand euros. Our gaze is fixed on the $ 12 resistance level as further consolidation around current levels is expected during the US elections. before breaking the upside in the future.