It has been just reported that Coin Bureau is offering his stance on the short-term future of Bitcoin. Check out the latest reports about the matter below.
New Bitcoin short-term prediction is out
Guy Turner, who hosts the Coin Bureau YouTube channel, has cautioned that Bitcoin (BTC) is not immune to the laws of diminishing returns.
Turner said that based on the historical gains of the flagship crypto asset, Bitcoin could potentially surge by about 250% from the current level during the next crypto bull market.
He adds that there are several ways of measuring historical gains, but the method preferred by his team is to consider the previous zone of support and resistance for the entire cycle and compare it with the most recent top.
In the case of BTC, this zone was about $1,000 during the first cycle, and the top in 2017 was about $20,000, resulting in 20x gains.
He stated the following:
“In the second cycle, BTC’s key [support and resistance] zone was around $10,000. BTC’s top in 2021 was $70,000, so 7x. This suggests that BTC has diminishing returns over time, which makes sense, considering that this is what happens to every asset as it matures. If we accept this premise, then BTC should see around a 3x gain between its current key zone and its next top.”
He continued and said this:
“As far as we can tell, BTC’s key zone is around $40,000 for this cycle. This actually makes sense, considering that $40,000 is roughly what it will cost to mine BTC after the next halving. So some quick math tells you that this translates to a BTC price of roughly $120,000, which is in line with many other predictions.”
Bitcoin is trading at $34,308 at time of writing.
Turning to Ethereum (ETH), Turner suggests that the second-largest cryptocurrency by market cap could experience a significant rally of around 726% from its current level during the next bull market.
In the previous cycle, ETH’s zone of support was around $250, while its top in 2021 was approximately $5,000, resulting in a 20x gain. Based on this trend, ETH’s current zone could offer a 7x gain compared to its current value.
Similar to BTC, ETH’s zone for this cycle is around $2,500, which is roughly 10 times the zone of the previous cycle. Interestingly, a 7x gain from its current value would result in a $15,000 ETH top, which is also in line with the predictions of many experts in the field.
ETH is worth $1,815 at the time of writing.
