Ever since Bitcoin shot over 1,000% higher in 2017 to hit $20,000 — a price point that was once seen as relatively unobtainable by even some of the cryptocurrency’s most dedicated bulls — analysts have been waiting for the asset to “moon” once again.
It appears that the moon, a noun-turned-verb used to describe the price of assets rising an extremely rapid clip, is rapidly approaching — if Bitcoin can break one key level that is.
Bitcoin Needs to Break Past Ultimate $14,000 Level
While the price of the leading cryptocurrency surged as high as $20,000 in 2017, it didn’t stay at this level for long, failing to establish any semblance of support in that region. In fact, it closed the month of December at $14,000 — 30% below the all-time high as bulls failed to maintain momentum.
For those not versed in technical analysis, this close meant that $14,000 became the level to cross above on a monthly basis, for a close above this ultimate resistance would suggest a higher high has been established.
A chartist going by “Delboy” doubled down on this in a recent tweet, remarking that Bitcoin’s long-term chart is showing signs that $14,000 might be key in launching the price of BTC “to the moon.”
— Delboy (@sp184eib) February 21, 2020
Indeed, NewsBTC’s look at the long-term Bitcoin charts indicated that once BTC surmounted the monthly high of the 2013 bubble around $1,150, the bullish momentum quickly picked up, taking the asset to $20,000 by the end of 2017.
How High Could BTC Go?
While the jury is still out on where exactly the next bull run will take BTC, the consensus is a fresh all-time high of at least $50,000, proven by a crazy accurate price model made by an institutional quantitative analyst and shilled by a bonafide German bank.
The model, dubbed the stock-to-flow model, equates Bitcoin’s scarcity, derived from the above-ground supply divided by the rolling issuance of the coin, to the asset’s market cap. It determined, to a 95% R squared, that after the BTC block reward reduction in May 2020, a coin will have a fair value of anywhere between $55,000 to $100,000.
GeertJancap, a Twitter user interested in disruptive technologies, noted that per his transfer function model of Bitcoin’s price, BTC’s price will catch up to the model, created by pseudonymous analyst PlanB, a year after the halving in the middle of 2021.