Key Points
- Bitcoin could potentially double its value to $200k by the end of the year, according to pseudonymous market analyst, Stockmoney Lizards.
- Technical and on-chain indicators suggest that Bitcoin has ample room for growth.
Bitcoin’s value might see a significant increase by the end of this year. According to Stockmoney Lizards, a pseudonymous market analyst, the value of Bitcoin (BTC) could potentially double to $200k by the end of the year.
Technical and On-Chain Indicators
The analyst’s projection is based on technical and on-chain indicators. The attached chart from his analysis showed historical RSI (Relative Strength Index) levels. These levels indicate overbought and oversold conditions, which correlate to previous BTC cycle tops and bottoms.
According to the same indicators, the RSI hasn’t flagged another bearish reversal signal. This suggests that Bitcoin is far from reaching its peak.
More Room for Growth?
The analysis also implies that Bitcoin is currently undervalued. Another valuation model, the True MVRV (Market Value to Realized Value) ratio, supports this idea. Historically, a True MVRV value of 2 marks local tops, while a reading of 4 and above flags cycle tops.
In March and December 2024, BTC’s local tops coincided with an MVRV of 2. At present, the MVRV has declined to 1.7, suggesting enough growth room for BTC on the price charts.
The 200-week MA (moving average), which typically marks the BTC cycle bottom, has jumped to $43k. This suggests that the next bear phase could bottom above $40k before triggering another bull run phase.
However, the king coin still faces some short-term risks. According to crypto trading firm QCP Capital, Donald Trump’s presidential inauguration and slow Fed rate cut path expectations could expose BTC to gappy moves.
Their daily market commentary shared on Telegram read, “Expect heightened volatility before and after the inauguration as markets digest and adjust to a new term under Trump. We maintain cautious of the downside as the $90k level in BTC has been tested numerous times.”
