Bitcoin Indicator Accurate Forecast – Where Is BTC Heading? New $14k Prediction
The crypto market is extremely unpredictable these days since the outbreak of coronavirus was declared a pandemic.
Analysts were expecting to see Bitcoin rise in price exponentially around May when the halving is scheduled, but now experts are not so sure that the predictions will remain the same, considering the financial disaster lurking in all the markets.
New Bitcoin valuation model
There’s a new BTC valuation model that offers a unique way for traders to forecast the future price of Bitcoin.
Crypto analyst called Data Dater introduced the Bitcoin Cost of Production (CoP) model, according to the online publication the Daily Hodl:
“The metric factors in the capital expenditure (CapEx) and operating expenditure (OpEx) of the miners who power the Bitcoin network in order to calculate a projected minimum price of BTC.”
According to the online publication, CapEx “includes the cost of a mining rig, farm infrastructure, and regulatory expenses, while OpEx includes labor expenses, pooling fees, and power expenses.”
When will BTC enter a rally again? $14,000 prediction
This model is reportedly accurate in hinting when Bitcoin will be rallying again.
“The CoP model is reliable for obtaining an intrinsic floor price of Bitcoin. This is the price that a bitcoin tends to move towards and serves as an over/undervaluation metric,” Data Dater said.
According to the model mentioned above, the analyst says the price of BTC may surge to nearly $14,000 when Bitcoin’s next halving occurs in May.
“At present, the cost of mining one bitcoin is about $7,577.51. Assuming the network hashpower remaining the same and with the introduction of the S19 Pro, this cost is expected to be at $13,964.11 at the time of the next block reward halving in early May 2020,” he reportedly explained, as cited by the online publication mentioned above.
We recommend that you head over to the original notes in order to learn more about how this model works.
At the moment of publishing this article, BTC is trading in the red, and the coin is priced at $4,951.41.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.