Bitcoin (BTC) has “well-formed” evidence, suggesting that its next high will jump to $200,000, one analyst says.
Jo tweet on January 27, popular Twitter commentator Trader Tardigrade, also known as Alan, also revealed $70,000 as the next potential market bottom.
The stochastic indicator offers historical firepower of Bitcoin bulls
For many, BTC price action is still bound by Bitcoin’s four-year halving cycles. The resulting price model offers an “all-time high year” in all four, with 2025 next in line.
The halving of Bitcoin’s block subsidy will happen a year earlier, and thereafter, Alan argues, the way will be open for a giant $200,000.
That price tag came out of an analysis of Bitcoin’s stochastic oscillator, which syncs with a high and low cycle in BTC/USD. Currently, the indicator is printing its last trough, and if history is a guide, price action will do the same.
The stochastic oscillator is a volatility tool, which compares closing prices with historical averages.
“Bitcoin’s well-formed structure with stochastic behavior indicates that the next ATH will be at 200K and the next floor will be at 70K,” summarized Alan along with an illustrative chart.
The responses to the post revealed a familiar divergence of opinion when it comes to Bitcoin’s future potential in terms of the US dollar.
However, $200,000 may seem modest to some long-term market participants, that level is only 189% higher than the existing high from November 2021.
The consensus believes that the scope of BTC investment returns will decrease in percentage terms over time, with long-term volatility cooling each cycle.
PlanB eyes $32,000 BTC next price
Equally optimistic in the current environment, meanwhile, is PlanB, the analyst responsible for the controversial Stock-to-Flow family of BTC pricing models.
Related: Bitcoin could still crack $50K if gold correlation continues – Chart
Bitcoin’s behavior in January was a decisive turning point, he believes, pointing to various metrics on the chain as proof of recovery.
Among the last is realized return, which follows aggregate profitability of spent coins.
“The return realized only came out positive! Sellers are now taking profit (green) instead of cutting losses (blue) .. big difference,” PlanB he commented on a chart.
Plan B added this week that the next short-term target of Bitcoin should be $32,000, also based on realized price data.
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