“The once-lucrative landscape of Bitcoin and Ethereum may be losing its shine, as a crypto analyst sounds the alarm on diminishing returns. Is it time for investors to brace themselves for a new era in the world of cryptocurrencies?”
A recent analysis by a well-known crypto analyst has shed light on a trend of diminishing returns for Bitcoin and Ethereum. The analysis, conducted by Coin Bureau’s Guy Turner, used a method of analyzing historical gains through key zones of support and resistance.
According to Turner’s analysis, during Bitcoin’s first cycle, the support and resistance zone was approximately $1,000. With Bitcoin’s peak in 2017 reaching about $20,000, this marked a 20x gain. However, in the subsequent cycle, where the key zone was around $10,000 and the top was $70,000 in 2021, the gain was 7x.
Turner also noted that Ethereum seemed to be following a similar pattern, with a 20x gain in the previous cycle and a projected 7x gain in the current cycle. Based on this pattern, Turner forecasted a potential 3x gain from Bitcoin’s current key zone to its next peak, suggesting a Bitcoin price of around $120,000 in the next cycle. For Ethereum, Turner predicted a possible price of $15,000.
These findings highlight the importance of understanding potential patterns in the ever-evolving world of digital assets. They will be further explored at Benzinga’s Future of Digital Assets conference on Nov. 14, which aims to shed light on the trajectory and potential of cryptocurrencies in the coming years.
It is interesting to see how these major cryptocurrencies experience diminishing returns over time, which is a common occurrence for mature assets. As the crypto market continues to evolve, it is crucial for investors and enthusiasts to stay informed about these patterns and trends.