As already stated, despite the massive market volatility, there are a lot of optimistic predictions about the price of Bitcoin and other important digital assets. Check out the latest prediciton about the price of the king coin below.
New Bitcoin prediction is out
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $20,167.
An important crypto analyst is comparing Bitcoin’s price action to one traditional stock to predict what’s next for BTC after a rocky last two months.
In a new strategy session, the anonymous host of InvestAnswers highlights automaker Tesla and discusses the significance of mean reversion, a metric that posits an asset’s price will eventually return to its long-term average.
“Let’s look at the pair. This is the Tesla-divided-by-Bitcoin pair, and you can see the price now is about 0.036. We are back at late 2020 levels. It’s like a big huge U.”
He continued and stated the following:
“Is mean reversion overdue? Looking at this chart, you’ll see the blue line, that’s the 200-day moving average. That’s about 0.024 and we’re currently trading at 0.036. While Tesla has remained flat over the last 12 months, Bitcoin has gotten clobbered down 70%.”
In his opinion, that is where we are, and “that is the situation and that’s why there’s parallax like this.”
Assets with true utility and value
The analyst says most assets with true underlying utility and value will revert to their mean. This is exactly the reason for which he expects both Tesla and Bitcoin to post rallies starting in about half a year.
“Short and succinct, not financial advice, of course, everything mean reverts unless it’s a piece of crap or it’s broken.”
He continued and explained that Tesla has held up well during the correction and recession incredibly well.
Stay tuned for more news and make sure to keep your eyes on the crypto market.