The price of Bitcoin has been holding remarkably steady lately. For more than two months, the digital currency has been stuck around the $6500 mark.
That may come as a surprise to those who follow cryptocurrency markets closely. For a couple of reasons. One of them is volatility. The Bitcoin price has been all over the map last year. It raced from around $6000 at the end of September to close to $20,000 by mid-December, before heading back to $6,000.
Then there’s timing. Bitcoin’s stability comes at a time of rising US interest rates that have strengthened the dollar against several currencies.
To technical analysts, price stability is usually followed by major moves. Will Bitcoin have another wild ride by Christmas?
To find that out Greg Giordano, my co-author in a research paper on Bitcoins “intrinsic” value, performed a simulation to three econometric models, the Hayes’s model and the Wheatley models, and the Market Model (our own).
The results of this exercise are summarised in table 1.
Bitcoin Price By Christmas: A Bullish, A Bearish, And A Moderate Forecast!