Bitcoin Expected to Reach $100,000 Minimum Based on On-Chain Indicator: Analyst Jamie Coutts
Blockchain analyst Jamie Coutts believes that Bitcoin has the potential to reach a minimum price target of $100,000 by next year. Coutts is closely monitoring Bitcoinโs MVRV Z-score, which measures whether BTC is undervalued or overvalued by comparing its market value to its realized value.
According to Coutts, based on historical cycles and the current Bitcoin price, the MVRV Z-score should reach four standard deviations above fair value. This implies a minimum price of $100,000 per BTC by 2025.
โLast time MVRV Z-score was rising >2 standard deviations in a new cycle was November 2020, 6 months after the Halving. Bitcoin is now ahead of previous 2 cycles on price performance. MVRV Z-score topped above 6 last cycle. If cycle moderation continues, then 4-5 standard deviations seems fair this cycle, implying a BTC price of $100k min by 2025.โ
Ethereum vs. Bitcoin Chart Signals New Phase in Crypto Bull Market
Coutts, a former Bloomberg analyst, also shares an Ethereum versus Bitcoin (ETH/BTC) chart that he believes acts as a signal for different phases of crypto bull markets. He points out that when ETH/BTCโs 50-week simple moving average (SMA) moves above its 200-week SMA, it historically signals the beginning of a new bull market chapter where capital rotates from Bitcoin into altcoins.
โMy market regime [for] Ethereum vs. Bitcoin signal will likely trigger in the coming days, marking the next phase in the crypto bull market.โ
The analyst explains that in the first phase of the bull market, BTC outperforms and the ratio of ETH/BTC drops significantly. This is followed by a clawback period that goes relatively unnoticed. Then, as profit takers move in pre-halving, they rotate their profits into altcoins. Coutts suggests that this conservative strategy waits for the 50/200 SMA cross before confirming.
While Coutts acknowledges that the sample size is small and statistically significant, he believes it makes sense intuitively and maps degenerative psychology in the crypto market. The 50/200 SMA crossover acts as a signal, and if it doesnโt work, a crossover in the opposite direction will indicate a small loss.
Hot Take: Bitcoinโs Potential for Massive Growth
Blockchain analyst Jamie Coutts predicts that Bitcoin has the potential to reach a minimum price target of $100,000 by next year based on an on-chain indicator. He is closely monitoring Bitcoinโs MVRV Z-score, which measures whether BTC is undervalued or overvalued by comparing its market value to its realized value.
Coutts explains that historical cycles and the current Bitcoin price suggest that the MVRV Z-score should reach four standard deviations above fair value. This implies a minimum price of $100,000 per BTC by 2025.
In addition to the on-chain indicator, Coutts also shares an Ethereum versus Bitcoin (ETH/BTC) chart that he believes signals a new phase in the crypto bull market. When ETH/BTCโs 50-week simple moving average (SMA) moves above its 200-week SMA, it historically indicates a shift of capital from Bitcoin to altcoins.
While these indicators are not foolproof and rely on limited data points, Coutts believes they provide valuable insights into market trends and investor behavior. By analyzing these indicators, investors can make informed decisions about their crypto investments.
In conclusion, Couttsโ analysis suggests that Bitcoin has the potential for massive growth in the coming years. With the MVRV Z-score indicating a minimum price of $100,000 by 2025 and the ETH/BTC chart signaling a new phase in the bull market, investors may want to consider adding Bitcoin and altcoins to their portfolios.
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