Benzinga – by Murtuza Merchant, Benzinga Staff Writer.
A new analysis of the trajectory of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) by a well-known crypto analyst has highlighted a trend of diminishing returns for supreme cryptocurrencies.
This observation from Coin Bureau Guy Turner was based on a method of analyzing historical gains across key areas of support and resistance.
In the context of the ever-changing world of digital assets, understanding these potential patterns becomes paramount. This topic, among others, will be explored further at Benzinga’s Future of Digital Assets conference on November 14, which aims to shed light on the trajectory and potential of cryptocurrencies in the years to come.
According to Turner’s analysis, during Bitcoin’s first cycle, the support and resistance zone was around $1,000. With Bitcoin peaking in 2017 reaching around $20,000, that represents a 20x gain.
However, during the next cycle, where the key zone was around $10,000 and the high was $70,000 in 2021, the gain was 7x.
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“This suggests that BTC has diminishing returns over time, which makes sense given that this is what happens to every asset as it matures,” Turner said.
Based on this model, Turner predicted a potential 3x gain between Bitcoin’s current key zone and its next high.
Given that the key area of the current cycle was estimated at $40,000, this suggests a Bitcoin price of around $120,000 during the next cycle.
Ethereum, another major cryptocurrency, has not escaped this trend.
Turner pointed out that Ethereum appears to be following Bitcoin by a cycle. With Ethereum’s previous cycle support zone at $250 and a 2021 high of around $5,000, the gain has increased 20x.
Looking ahead, Turner predicted a 7x gain from Ethereum’s current area of around $2,500, hinting at a possible price of $15,000, which matches several other predictions of the market.
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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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