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.
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