Metric loss

Crypto Analyst Predicts Bitcoin (BTC) Price to Triple Based on a Single Metric – Here’s His Timeline

A crypto analyst compares Bitcoin’s price action to a traditional stock to predict what’s next for BTC after a tough two months.

In a new strategy session, the anonymous host of InvestAnswers strong points automaker Tesla while educating its 442,000 YouTube subscribers about the importance of mean reversion, a metric that posits that the price of an asset will eventually revert to its long-term average.

“Let’s look at the pair. This is the Tesla pair divided by Bitcoin, and you can see that the price is now around 0.036. We’re back to late 2020 levels. It’s like a big huge U.

Is mean reversion overdue? Looking at this chart you will see the blue line, this is the 200 day moving average. It is around 0.024 and we are currently trading at 0.036. While Tesla has been flat for the past 12 months, Bitcoin has fallen 70%.

This is where we are, this is the situation and this is why there is such a parallax.

Source: InvestAnswers/YouTube

The analyst says most assets with true underlying utility and value will revert to their mean, which is why he expects Tesla and Bitcoin to record rallies starting around six months out.

“Short and succinct, no financial advice, of course, everything means coming back unless it’s a crap or it’s broken.”

Tesla has held up incredibly well through the correction and recession. While I think Tesla will hit $1,200 in the next six to 12 months, a little less than double, I also think Bitcoin could potentially triple in the same time frame. Six to 12 months, which is summer 2023 and that’s very, very conservative.

The Tesla/Bitcoin pair is currently at 0.036. [The] The 200-day moving average is 0.024, so technically we are there. I don’t expect the pair to go higher than this 0.036 level.

As for Tesla’s future earnings, the charting guru mentions that the company will suffer a heavy loss on paper for its current Bitcoin holdings.

“They are going to be hit hard. They’re going to have an impairment charge of maybe $450 million. A lot of things hit them, but they had the worst quarter-over-quarter performance in more than two years.

I think this pair is going to go down, and I think once the offers start to come back… it’s more likely that Bitcoin is bought at this level and Tesla can go down, so watch that 0.036 level.

At the time of writing, Bitcoin is up 6.02% on the day and priced at $20,258.

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