We have all seen how Bitcoin (BTC) price has been doing since the end of June, and there has been only one direction. Unfortunately, after peaking at $14,000, it got to a low of $7,700 in just three months. What is the stance investors and analysts take? Should they be still bullish, looking at the data?
Here is why the answer is yes.
Bitcoin is “closing up the opening act of the bull market”
According to analysts and crypto market experts, Bitcoin (BTC) is in the early bull run. Adaptive Capital’s Willy Woo posted on Twitter data showing where Bitcoin is now standing:
“Cheat sheet map of where we are in this bull market according to on-chain metrics. We’re closing up the opening act of the bull market, and awaiting the middle bull market to commence.”
Looking at the Realized Price and the VWAP Ratio in the Twitter thread, he compared the beginning of previous bull markets with the current price action.
And he’s not alone. Bitcoin Economics spotted that the Bitcoin Economics Adaptive Multiple (BEAM) is now at a 0.06, showing that BTC is in the “early bull market.”
Moreover, PlanB’s fractal dimension analysis shows BTC entering a so-called “orange/red phase,” which translates into bullish price action:
“New chart: #bitcoin fractal dimension changes over time and seems to indicate phases like bear, neutral, bull. Note how consistently blue turns to green, orange, red and vice versa. And yes we are at the start of a orange/red phase (although it might not feel like it right now)”
BTC’s Early Stage of a Bull Cycle
Considering everything points towards BTC heading towards a new top, how far upwards will the cryptocurrency go?
The price model from PlanB says the next years, BTC will top out somewhere between $50,000 and $100,000. Bitcoin’s current SF ratio is around 25, but next year it is expected to get double when the block reward reduction is activated for Bitcoin.
With PlanB’s model showing that the fair market capitalization is of least $1 trillion, the price for one BTC will be around $50,000. If the analysis from PlanB is still relevant in the future, the $50,000 price per coin is by no means a far-fetched estimate.