Towards the end of 2019 that lackluster price action experienced by Bitcoin had led many investors and analysts alike to grow increasingly bearish on the cryptocurrency, and discussions about BTC surging to fresh all-time highs were far and few between.
This has changed in the meanwhile, however, as the uptrend the cryptocurrency has been caught within throughout 2020 appears to have revitalized bulls, leading many investors to begin offering their predictions for where the crypto could travel to at the peak of its next parabolic rally.
One prominent analyst is now noting that Bitcoin’s peaks during its next major uptrend may disappoint some optimistic investors, and some economic models seem to agree with him.
Bitcoin May Surge to $75k During Next Parabolic Cycle
Currently, Bitcoin is trading just a hair below the $9,000 level, which marks a massive climb from its 2020 lows of $6,800 that were set in the first few days of January.
Although Bitcoin is still struggling to decisively break out of its macro downtrend, many investors are now taking sight of significantly higher near-term price targets within the five and six figure price ranges.
These predictions may be overly optimistic in the short-term, but Josh Rager – a prominent cryptocurrency analyst on Twitter – explained in a tweet from earlier today that he does believe BTC will reach highs of $75,000 or $85,000 during the next major uptrend, but this is still a far cry from the astronomically high predictions offered by some analysts and investors.
“$BTC Unpopular Opinion: The next Bitcoin peak high will not be as high as most people think. Lots of analysis out there point from $100k to $300k to $1M. Simple rate of return will show you bottom to peak return reduces by around 20% each cycle. IMO, next high hits $75k to $85k,” he explained.
$BTC Unpopular Opinion:
The next Bitcoin peak high will not be as high as most people think
Lots of analysis out there point from $100k to $300k to $1M
Simple rate of return will show you bottom to peak return reduces by around 20% each cycle
IMO, next high hits $75k to $85k pic.twitter.com/EoWZqcWfbe
— Josh Rager 📈 (@Josh_Rager) January 17, 2020
Economical Model Suggests That BTC May Surge Towards $100,000 During Next Uptrend
Bitcoin’s stock-to-flow model – which was crafted and popularized by prominent Bitcoin analyst PlanB – seems to concur with Rager’s assessment, as it suggests that Bitcoin’s next major uptrend will lead it up towards $100,000.
“Proof is in: #bitcoin price is mainly driven by stock to flow, not by any other factor. Cointegration, not correlation, is key: btc price has been and likely will be below & above S2F model value every year,” PlanB noted.
Proof is in: #bitcoin price is mainly driven by stock to flow, not by any other factor
Cointegration, not correlation, is key: btc price has been and likely will be below & above S2F model value every yearhttps://t.co/n5P5uMCKHThttps://t.co/pyid3iZduBhttps://t.co/z25vfx0yBM pic.twitter.com/imja5ybKaP
— PlanB (@100trillionUSD) September 7, 2019
Although a run to $75,000 may disappoint some overly bullish investors, it is appearing increasingly as though this is a strong possibility, which may mean that 2020 will continue to be a great year for BTC.
Featured image from Shutterstock.