Bitcoin Bear Market May Be Over, BIT Research Says
Bitcoin's bear market may be over, according to an analysis by BIT Research. The company's report suggests that a new bull cycle has begun for BTC, with the price surpassing $62,900 and rising above the 21-week moving average of $69,272. This move is considered a key indicator that the bear market is over.
BIT Research used an Elliott Wave analysis to determine the bottom of the cycle in late July. The company also calculated the fair value of BTC using a model based on the relationship between US federal debt and the Bitcoin price. According to this model, the fair value of BTC is approximately $105,000.
The report also notes that past cycles have seen bull markets peak after the price rose at least 85 percent above the average cost in the market. Using this calculation, BIT Research estimates a baseline target of around $142,000 for the current cycle. However, the company's next bullish forecast is based on the assumption that the upside coefficient in previous Bitcoin cycles has narrowed over time.
BIT Research calculates the possible peak for the current cycle to be between $185,000 and $215,000, assuming a 1.3-1.5 times multiplier from a base of $142,000. The report does not necessarily mean that future price movements will definitely follow these levels.