The Bitcoin price has been expected to hit the 6-figure mark for a couple of years now, but this target continues to be elusive for the cryptocurrency.
Crypto analysts are known for their outlandish price predictions, and while some may hit the mark, others tend to miss the target by a mile. However, one crypto analyst has taken a unique approach to predicting the Bitcoin price, using historical data to chart a 13-year trend that could see BTC hit $200,000 by 2025.
In an X (formerly Twitter) post on March 12, pseudonymous crypto analyst @apsk32 shared a 13-year trend that has held true for Bitcoin since its inception. This trend uses a power law equation and an exponential decay to help pinpoint how high the BTC price will go in each cycle and how low it could possibly drop after.
The Power Law Cycle Cloud, demonstrated by the crypto analyst in a video attached to the X post, showed how high the BTC price has risen and dropped in the last three bull and bear cycles. Using the same trend, the crypto analyst has proposed how high the Bitcoin price will rise.
According to the trend, the crypto analyst believes that the Bitcoin price will break the 6-figure mark and peak just below or at $200,000. The year when this is expected to happen is 2025, which would stick to the established four-year bull cycles for BTC.
“This power law + exponential decay price channel has guided BTC's price minima and maxima over the last 13 years (log scale). We can use it to anticipate price targets for the upcoming bull,” stated the crypto analyst in the X post.
“Applying the same trend to the upcoming bull market, we can anticipate BTC peaking at $175,000-$200,000 in 2025. After this, we can expect a bear market that drops BTC to $75,000-$90,000.”
Bitcoin Price Trend Adhered To Despite Bear Markets
The crypto analyst further addressed concerns that the Bitcoin price could deviate from this trend. For one, he points out that Bitcoin proponent Micheal Saylor had said that “all your models will be broken!” However, the analyst highlights the fact that the model Saylor eventually presents for BTC also aligns with what the Power Law says.
“Micheal Saylor says 'all your models will be broken!' But even the model he presents for BTC aligns with the Power Law,” stated the crypto analyst.
The analyst also acknowledges the potential of an invalidation, saying, “I’ll watch for an invalidation of the channel. As someone who’s seen the value of their BTC fall by 80% twice, I’m looking for more than ‘this time will be different’.”
As for Bitcoin moving away from the power law and exponential decay trend, the crypto analyst explained, “We don’t have to like this, but we need to respect it.” He further added, “We can hope it will change while staying aware of this 13-year trend.”
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