Tuesday, 02 January 2024 12:17 GMT

Bitcoin Power Law Indicates Market Breakout-Experts Predict Major Rally


(MENAFN- Crypto Breaking) Recent analysis suggests that Bitcoin 's (BTC ) market is on the verge of a significant move upward, based on a long-term power law model. While numerous industry analysts have recently downgraded their Bitcoin price targets amid broader market volatility, some experts believe that current price action signals an imminent breakout. With Bitcoin's price“hugging” its fair value for the first time since March 2024, traders are closely watching for signs of a potential surge reminiscent of past bullish movements.
  • Bitcoin's current price aligns with its long-term fair value, indicating potential for a sharp upward breakout.
  • Analyst Adam Livingston predicts Bitcoin could soar to over $512,000 by the end of 2025.
  • Despite recent downward revisions from major firms, some industry veterans remain optimistic about Bitcoin's long-term prospects.
  • Market fears persist following October's crash and falling prices, prompting widespread bearish forecasts.
  • Long-term outlooks by prominent investors like Ark's Cathie Wood have tempered expectations but remain optimistic overall.

According to analyst Adam Livingston, Bitcoin's power law model, which estimates a“fair value” of approximately $142,000, indicates that BTC is positioning itself for a major upward move. Livingston notes that Bitcoin has been trading close to this level since March 2024, a pattern historically associated with explosive bullish activity. In past cycles, such alignments have either led to a rapid rally or a brief dip before a vertical breakout, which suggests similar dynamics could unfold now.

BTC price analysis based on the Bitcoin power law. Source: Adam Livingston

The bullish forecast contrasts sharply with recent industry sentiment, as several leading crypto firms have lowered their Bitcoin price targets after a sharp market downturn. Following October's crash, many analysts now see prices falling below the critical $100,000 psychological level, casting doubt on the longevity of the previous bullish cycle.

Galaxy Digital, for instance, revised its 2025 year-end Bitcoin forecast downward from $180,000 to $120,000, citing decreased volatility, a maturing market, and the reallocation of investor capital into emerging narratives such as artificial intelligence (AI). Galaxy's head of research, Alex Thorn, stated,“If Bitcoin can maintain the $100,000 level, the nearly three-year-long bull market should remain intact, albeit with slowed gains.” Despite the recent correction, Thorn remains optimistic about Bitcoin's long-term trajectory.

Similarly, Ark Invest's Cathie Wood has lowered her long-term Bitcoin target by $300,000, noting that stablecoins are eroding Bitcoin's dominance as a store of value, particularly in emerging economies where demand is shifting. Overall, while near-term bearish sentiment dominates, many veteran investors maintain a belief in Bitcoin's resilient upward trend over the next several years.

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