AssetsJan 30, 2023

Bitcoin will reach $200,000 ahead of the next bear market based on an important indicator

Bitcoin has a “well-formed” history for further price increases, Trader Tardigrade points out.

According to one analyst, the stochastic indicator leaves the door open for a 189% increase in the price of BTC compared to the current all-time high of the major cryptocurrency. Bitcoin has a "well-formed" history that suggests its next all-time high will top $200,000, Trader Tardigrade points out. BTC/USD is consolidating around $23,000 over the weekend.

Bitcoin: The stochastic indicator suggests the historical strength of the BTC bulls

In a January 27 tweet, popular Twitter commentator Trader Tardigrade, also known as Alan, revealed that after rising to $200,000, the cryptocurrency king is facing a drop to $70,000, which is supposed to be another potential bear bottom.

For many, the price of BTC is still associated with four-year halving cycles, i.e. halving mining rewards. The resulting price pattern for the oldest cryptocurrency offers one year of all-time highs in four, with 2025 next in line.

Bitcoin's block reward halving will come a year earlier, and from then on, according to Alan, the path to growth will be open up to $200,000.

This price is derived from the analysis of the Bitcoin stochastic oscillator, which synchronizes with the cyclical highs and lows of BTC/USD. Currently, the indicator is drawing its last low on the BTC price chart, and if we take history as a guide, price behavior will work similarly. The stochastic oscillator is a volatility measurement tool that compares closing prices to historical averages.

“Bitcoin’s well-formed structure with stochastic behavior indicates that the next ATH will be at 200,000, followed by a correction around 70,000,” Alan concluded with the attached chart.

Nevertheless, $200,000 may seem like a modest level to some longtime market participants as it is "only" 189% higher than the previous all-time record set in November 2021.