The power law model for Bitcoin (BTC) sets the "fair value" of BTC at $142,000. According to the author and analyst Adam Livingston, this model indicates that the BTC price is preparing for an upward breakout.
Livingston stated that by December 31, the upper price limit for Bitcoin is expected to be around $512,000, while the fair value price is approximately $142,000, with the lower end of the range slightly above the $50,000 level.
Livingston noted that since March 2024, the price has been "closely aligned" with the fair value line, which is unusual and suggests that Bitcoin is ready for an upward breakout. He added:
This bullish price prediction comes amid analysts downgrading BTC forecasts and the decline in cryptocurrency prices, raising concerns among investors that the next bear market has already begun.
After the historic market crash in October caused BTC prices to fall below the key psychological level of $100,000, several investment firms have downgraded their BTC price forecasts.
Galaxy lowered its Bitcoin forecast for the end of 2025 from $180,000 to $120,000 on Wednesday, citing the October market crash, reduced volatility due to market maturation, and investors shifting towards competitive narratives like artificial intelligence.
"If Bitcoin can maintain the $100,000 level, we believe this nearly three-year bull market will structurally remain intact, although the pace of future gains may slow," said Alex Thorn, head of research at Galaxy.
Thorn added that the October cryptocurrency market crash has "severely damaged" the bullish price trend in the short term, but he remains optimistic about Bitcoin's long-term price trajectory.
Ark Invest founder Cathie Wood also downgraded her long-term BTC price forecast by $300,000, citing that stablecoins are eroding Bitcoin's market share by meeting the demand for value storage assets in emerging economies.
Related: As short sellers exit MSTR, the Bitcoin (BTC) treasury bear market is expected to end.
Original: “Analyst: Bitcoin (BTC) Power Law Model Shows ‘Coiled Spring’ Ready to Burst Higher”
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