Author: Kevin Helms, Bitcoin; Translated by: Tao Zhu, Jinse Finance
One technical analyst stressed that Bitcoin is approaching the “starting point of the most aggressive part of its historical bull cycle,” predicting that the cryptocurrency’s price could rise to $300,000. “Whether unrealistic or not, this gives us a $300,000 forecast, and it is undeniably technical, as these are precise high-to-low measurements of when the MM [Mayer Multiple] mean is touched,” the analyst described.
Bitcoin is about to enter a historically aggressive bull cycle phase
Tradingshot, a Tradingview contributor with more than 72,000 followers, shared his insights on where Bitcoin’s price is headed. In an article published Thursday titled “Bitcoin: This marks a historic turning point,” Tradingshot used the Mayer Multiple Average, a technical indicator that measures Bitcoin’s current price relative to its 200-day moving average, to analyze its trajectory.
Referring to the chart below, the analyst explained that BTC “has successfully tested and held the Mayer Multiple (MM) mean (red trendline) and is currently consolidating.” Tradingshot noted that the green arrow marks the “starting point of the most aggressive parts of bull cycles in history,” noting that in instances when the MM mean was breached slightly, such as in July 2013, the subsequent rally was “even more impressive and strong.”
Tradingshot further elaborates that by measuring the Fibonacci extension from the MM mean low to the previous high, it is clear that cycle 1 just surpassed the 2.0 Fibonacci level. Cycle 2 then doubled the Fibonacci level of cycle 1 to 4.0, and cycle 3 doubled the Fibonacci level of cycle 2 to 6.0. This pattern suggests that by adding 2.0 to the Fibonacci level of cycle 3, cycle 4 may reach the 8.0 Fibonacci level.
“Of course, we can always assume, with relative uncertainty, that cycle 4 could be +2 Fibonacci more than cycle 3, i.e. 6.0 + 2.0 = 8.0,” the analysts wrote, concluding:
Unrealistic or not, this gives us a $300,000 forecast and is admittedly technical as these are exact high-to-low measurements of when the MM mean is hit.
