Bitcoin (BTC) has proven “well-formed”, which suggests that the next all-time high will top out at $200,000, said one analyst.
At tweet on January 27, the popular Twitter commentator Trader Tardigrade, also known as Alan, also revealed $70,000 as the bottom of the next potential bear market.
Stochastic indicator offers Bitcoin bulls historical firepower
For many, BTC price action is still bound by Bitcoin’s four-year halving cycle. The resulting price pattern offers one “all-time high year” in every four, with 2025 the next.
The Bitcoin block subsidy block will happen a year earlier, and from then on, Alan said, the path will open up to a giant $200,000.
The price tag comes from an analysis of the Bitcoin stochastic oscillator, which is synchronized with the cycle of highs and lows in BTC/USD. Currently, the indicator is printing its latest trough, and if history is a guide, price behavior will be as well.
The stochastic oscillator is a volatility tool, which compares closing prices with historical averages.
“Bitcoin’s well-formed structure with stochastic behavior suggests that the next ATH will be at 200K and the next floor will be at 70K,” summarized Alan along with an illustrative chart.
Responses to the post revealed that there is a familiar difference in opinion when it comes to the future potential of Bitcoin in terms of the US dollar.
However, $200,000 may seem modest to some long-time market participants, the level is only 189% higher than it was as of November 2021.
Consensus believes that the scope of BTC’s investment returns will diminish as a percentage of time, with long-term volatility cooling each cycle.
PlanB eyes $32,000 BTC price next
Equally optimistic in 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 behavior in January has been a decisive turning point, he believes, pointing to various on-chain metrics as evidence of recovery.
Among the latest realized return, which tracks the aggregate profit from the coins spent.
“Realized returns only appear positive! The seller now takes profits (green) instead of reducing losses (blue) .. big difference,” PlanB comments in the chart.
Plan B added this week that Bitcoin’s next short-term target should be $32,000, also based on realized price data.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.