Bitcoin Long-Term Valuation Model Predicts Possible Price Range

A long-term valuation model has been gaining attention in the cryptocurrency market, suggesting that Bitcoin could reach as high as $255,000 by year-end. The model, known as the Bitcoin Decay Channel, tracks BTC's long-term uptrend while adjusting for smaller gains in each new cycle.

The model suggests a possible range for the end of this year to be between $90,000 and $255,000. This prediction is based on historical data showing that major tops in 2013, 2017, and 2021 formed near the model's upper valuation bands, while bear-market lows repeatedly moved back toward its lower support zone.

Some analysts believe that Bitcoin may not need to fall as far as the predicted $56,000 level before a possible higher bottom forms. Onchain data suggests that a stronger long-term holder base may help BTC form a higher, slower bottom this cycle, with $70,500 as the key level to hold.