Analysts at the crypto exchange Kraken are looking at Bitcoin’s historic price action to determine where the top crypto asset may be heading in the long run.
A new report from Kraken Intelligence uses Bitcoin’s 200-week moving average as a crystal ball.
Specifically, Kraken looks at the multiples that BTC has traded at relative to its 200-week moving average in the past.
BTC is now trading close to its 200-week moving average of about $21,498, and a chart from Kraken shows that when Bitcoin’s price has previously dropped to 1x of its 200-week moving average – big rallies have often ensued.
If Bitcoin once again climbs to a 10x to 15x multiple of its 200-week moving average, which Kraken analysts say is in the historical range, this would imply a future price range of $214,985 to $322,478.
Kraken Intelligence is zooming far out for its data, plotting Bitcoin’s price chart back to its early days.
Its chart highlights Bitcoin’s December 11th, 2017 high of about $19,660, when the crypto king’s multiple reached a local high of 15.2x. It also marks a 13.2x multiple that was reached back in November of 2013.
Of course, BTC has not surged 10x its multiple or higher every time it has touched its 200-day moving average.
In March of 2021, the multiple hit a local high of 5.8x before the crypto markets entered a significant downturn.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Liu zishan
