Bitcoin (Bitcoin) has “good job” evidence suggesting the next high could reach $200,000, one analyst said.
so Tweet On January 27, popular Twitter commentator Trader Tardigrade (a.k.a. Alan) also revealed $70,000 as the next potential bear market bottom.
Stochastic Indicators Offer Historic Firepower To Bitcoin Bulls
For many, BTC’s price action is still tied to Bitcoin’s four-year halving. The resulting price pattern is that in 2020 he offers one “best year ever”, followed by 2025.
Bitcoin’s block subsidy halving occurred a year ago, paving the way for a massive $200,000 after that, Alan claims.
This price tag was born from an analysis of Bitcoin’s stochastic oscillator synchronized to the BTC/USD cycle highs and lows. The indicator is currently printing the latest trough, and if history is your guide, so is the price action.
The Stochastic Oscillator is a volatility tool that compares closing prices to historical averages.
“Bitcoin’s well-formed structure with its stochastic behavior dictates that the next ATH will be 200K and the next floor will be 70K,” Allan summarized with a diagram.
Reactions to the post revealed a familiar disagreement regarding the future potential of Bitcoin’s US dollar equivalent.
Nevertheless, $200,000 is just 189% higher than the existing all-time high in November 2021, which may seem conservative to longtime market participants.
The consensus is that long-term volatility cools with each cycle, and the range of BTC investment returns decreases by a percentage over time.
PlanB Next Targets $32,000 BTC Price
Equally optimistic in the current environment, on the other hand, is the controversial Stock-to-Flow family of BTC pricing models.
Related: Bitcoin Can Still Break $50,000 If Gold Correlation Continues — Chart
He believes Bitcoin’s move in January was a decisive turning point, pointing to various on-chain indicators as evidence of its recovery.
Among the latest is Realized Return, which tracks the total profitability of spent coins.
“Realized returns jumped positive! Sellers are now taking profits (green) instead of reducing losses (blue).. Big difference, PlanB commented on the chart.
next steps Added This week, Bitcoin’s next short-term target should be $32,000, also based on realized price data.
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