Altcoin News: Analyst: The Fair Price of Bitcoin by the End of the Year Will Be $21,000

June 24, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The 200-day Bitcoin moving average is at $5,085 and grows by about $35 per day, analyst and podcast author Trace Meyer points out.

Thus, the current spot price of Bitcoin exceeds the technical indicator by more than 2 times. Historically, this ratio was at such high levels only 14.79% of the time.

Based on the data, Mayer concludes that the current bull market is overloaded and can get into a correction if the price rushes to its “fair” values.

“Overextended bull markets loved until correction. 2.09x, $5,085 $BTC 200DMA rising ~$35/day. Historically higher only 14.79%. Thus, very low probability of $40k in a few months,” he writes. “But with #Bitcoin; anything can happen!”

At the same time, from his calculations, it follows that with further convergence of the cryptocurrency rate with the 200-day moving average by the end of the year, its fair price could reach $21,000.

Image credit: Twitter — Trace Meyer

The analyst notes that the “Mayer multiplier” mechanism developed by him is designed to analyze the bitcoin price based on data from the past and should not be used to make decisions about buying or selling cryptocurrency.

Historically, the model gave the best results when Bitcoin accumulation was lower than 2.4 on the scale of the multiplier.

The model also suggests that by September the fair price of Bitcoin will reach $15,000, but the cryptocurrency will remain overvalued, and by June 2020 — $30,500.

Author: Marko Vidrih