Bitcoin (BTC) has “well-formed” evidence, suggesting its next all-time high will top $200,000, analyst says.
in a cheep On January 27, popular Twitter commenter Trader Tardigrade, also known as Alan, also revealed $70,000 as the next potential bear market bottom.
Stochastic Indicator Gives Bitcoin Bulls Historical Firepower
For many, BTC’s price action is still subject to Bitcoin’s four-year halving cycles. The resulting price pattern offers one “all-time high year” in four, with 2025 next in line.
The Bitcoin block subsidy halving will happen a year early, and from then on, Alan argues, the road will be open to a giant $200,000.
That price tag arose from an analysis of Bitcoin’s stochastic oscillator, which syncs with cycle highs and lows in BTC/USD. The indicator is currently printing its latest low, and if history is any guide, price action will be too.
The stochastic oscillator is a volatility tool that compares closing prices to historical averages.
“Bitcoin’s well-formed structure with stochastic behavior indicates that the next ATH will be at 200K and the next bottom will be at 70K,” Alan summarized along with an illustrative chart.
The responses to the post revealed a familiar divergence in opinion when it comes to Bitcoin’s future potential in US dollar terms.
Nonetheless, $200,000 may seem modest to some longtime market participants, as that level is only 189% higher than the existing November 2021 all-time high.
Consensus believes that the scope of BTC investment returns will decrease in percentage terms over time, with long-term volatility cooling each cycle.
PlanB Targets $32,000 BTC Price Next
Meanwhile, equally bullish on the current environment is PlanB, the analyst responsible for the controversial Stock-to-Flow family of BTC pricing models.
Related: Bitcoin May Still Crack $50K If Gold Correlation Continues – Chart
Bitcoin’s performance in January has been a decisive turning point, he believes, pointing to various on-chain metrics as proof of the recovery.
Among the latter is realized return, which tracks the aggregate return on coins spent.
“The return made has just tested positive! Sellers now make profits (green) instead of cut losses (blue)… big difference”, PlanB commented in a graph.
Plan B aggregate this week that Bitcoin’s next short-term target should be $32,000, also based on realized price data.
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