Coin Bureau's Bitcoin Outlook: Anticipate Diminishing Returns in the Upcoming Bull Market, Warns Crypto Analysis
Guy Turner, Host of the Coin Bureau YouTube Channel, Cautions Against Overlooking Diminishing Returns in Bitcoin (BTC)
According to Guy Turner, the host of the Coin Bureau YouTube channel with 2.34 million subscribers, Bitcoin (BTC) may not be immune to the principle of diminishing returns, even in the upcoming crypto bull market. Turner suggests that, based on Bitcoin's historical gains, it could potentially surge by approximately 250% from its current level during the next bull market.
Turner explains his perspective by looking at the historical gains through the lens of support and resistance zones during different crypto cycles. For instance, in the first cycle, Bitcoin's key support and resistance zone was around $1,000, with a peak of $20,000 (a 20x gain). In the second cycle, the zone was around $10,000, with a peak of $70,000 (a 7x gain).
Based on this analysis, Turner suggests that Bitcoin demonstrates diminishing returns over time, a trend common to maturing assets. Applying this concept to the current cycle, with the key zone at approximately $40,000, he estimates that Bitcoin could reach around $120,000 in its next peak, which aligns with many other predictions.
As for Ethereum (ETH), Turner predicts that the second-largest crypto asset by market cap could potentially rally by approximately 726% from its current level in the next bull market. Ethereum's historical gains, similar to Bitcoin, show a pattern of diminishing returns, with its support zone in the previous cycle at around $250 and a peak of $5,000 (a 20x gain).
In the current cycle, Ethereum's key support zone is around $2,500, roughly 10x the previous cycle's zone. Turner's analysis suggests that a 7x gain from this level could lead to a peak of $15,000, in line with the predictions of many experts.
As of the current moment, Bitcoin is trading at $34,308, while Ethereum is valued at $1,815.
Oct 27, 2023