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Cryptocurrency News Articles
Bitcoin [BTC] Could Double Its Value to $200k by End-2025, Here's Why
Jan 16, 2025 at 08:30 am
Despite being temporarily stuck in the $90k-$100k range, Bitcoin [BTC] could double its value to $200k by end-2025.
Text Version: Despite Being ‘Stuck’ in the $90k Zone, BTC Might Double to Hit $200k by End-2025: Here's How
Despite being temporarily stuck in the $90k-$100k range, Bitcoin [BTC] could double its value to $200k by end-2025. This was a projection made by a pseudonymous market analyst – Stockmoney Lizards.
Part of his analysis read,
“We are only half-way to the top…We have not reached the top of the channel yet; no RSI-based top signal has been given either and price is still well above the blue channel after a short retest. Year-end target $200k.”
The attached chart highlighted historical RSI (red/green arrows) levels, indicating overbought (bearish reversal) and oversold (bullish reversal) conditions correlated to previous BTC cycle tops/bottoms).
Based on the same, the RSI hadn’t flagged another bearish reversal (red) signal – A sign that maybe, BTC is still far from topping out.
More room for growth?
By extension, the aforementioned analysis implied that Bitcoin was undervalued at its press time level. Another valuation model, the True MVRV (Market Value to Realized Value) ratio, confirmed this idea.
Historically, a True MVRV value of 2 marks local tops while a reading of 4 and above flags cycle tops.
In March and December 2024, BTC's local tops coincided with an MVRV of 2. At press time, the MVRV had declined to 1.7, suggesting enough growth room for BTC on the price charts.
Similarly, the 200-week MA (moving average), typical for marking the BTC cycle bottom, jumped to $43k. Simply put, the next bear phase could bottom above $40k before triggering another bull run phase.
Worth pointing out, however, that the king coin still faces some short-term risks. In fact, according to crypto trading firm QCP Capital, Donald Trump’s presidential inauguration and slow Fed rate cut path expectations could expose BTC to gappy moves.
Part of its daily market commentary shared on Telegram read,
“Expect heightened volatility before and after the inauguration as markets digest and adjust to a new term under Trump. We maintain cautious of the downside as the $90k level in BTC has been tested numerous times.”
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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