Bitcoin Price Key Indicator: $40k by December 2019 ‘Unlikely’ But $21,000 is ‘Fair Value’
- Mayer Multiple puts the fair value of Bitcoin at $30,500 in June 2020
- Bitcoin will finally take over the last peak by this year end, declared Trace Mayer, the Bitcoin Knowledge podcast host in his latest analysis on June 24.
“Mayer Multiplier” is the price forecasting tool used by the Bitcoin proponent Mayer who says the current trajectory should take Bitcoin price to $21,000 by December 2019. This will push the world’s largest cryptocurrency by market cap to move ahead of its peak hit in December 2017 at $20,000.
But “…very low probability of $40k in a few months,” Mayer said.
Solid point here
Now $BTC has topped this weekend at 259% increase since the bottom
Another 259% from this point would lead Bitcoin to $40k https://t.co/rpJhU3e3mw
— Josh Rager 📈 (@Josh_Rager) June 24, 2019
The Mayer Multiple is a calculation achieved by dividing the current price of Bitcoin by its 200 days moving average. Currently at 2.09, the metric puts the value of BTC at $10,633 this month which we achieved last week, only to take 24 hours to surpass $11,000, making a new 2019 high.
By September 2019, this metric puts BTC price at $15,000 that is overvalued only to find its fair value by December 2019 at $21,000.
Just an observation, but if $BTC re-attains its all-time high this year, it is only 18-20 months from prior high.
When a market re-attains a high so quickly, one could argue the prior high was not a bubble after all.
— Thomas Lee (@fundstrat) June 22, 2019
Historically, the metric has only seen higher readings 14.79% of the time, this means a big jump to $40,000 is not expected to occur, “but with Bitcoin; anything can happen!”
At the time of writing, BTC/USD has been trading at $10,858 with 24 hours gains of 0.52 percent.
Once we end the month at a new all-time high, Bitcoin will gain momentum and per Mayer Multiple, climb to the “fair value” of $30,500 in June 2020. This will be around the time (a month after) of Bitcoin reward halving in May 2020.