Model That Predicted Bitcoin Price Drop to $8,000: Bears Are Done
In early-August, a cryptocurrency investment boutique unveiled a price prediction model that used Facebook’s Prophet machine learning software in Python. BurgerCrypto, as the upstart is called, revealed in their model that they expect Bitcoin to fall to the low-$8,000 region in October.
Related Reading: Bitcoin Price May Buck Bull Trend & Fall by 75% to $2,000, Peter Schiff Warns
At the time the model was published, analysts were calling for BTC to resume its uptrend to fresh all-time highs beyond $20,000. But, as you likely well know, BurgerCrypto’s machine learning-based model turned out to be correct, with BTC falling as low as $7,700 earlier this month as bear pressure mounted.
What’s interesting is that the same trend-centric model shows that Bitcoin is poised to return to a five-digit price point.
Bitcoin Price to Head Higher
The model in question that BurgerCrypto created is derived from Bitcoin’s historical returns and the stock to flow ratio and forecasted by Facebook’s Prophet. As can be seen below, the model shows that Bitcoin bottoms in October, begins to trend higher into Halloween/early-November, then surges into the all-time high.
This model coincides with a similar one created by Twitter analyst Data Dater. Per previous reports from NewsBTC, their model says that the downtrend has decisively ended and that Bitcoin will surmount $10,000 once again by mid-November just a month away.
The fundamentals seemingly back this resumed price appreciation.
In a recent CNN interview, Galaxy Digital’s Mike Novogratz gave a number of reasons why Bitcoin is likely to see a growth in demand. These include negative interest rates, geopolitical unrest, and mistrust in centralized systems.
Geopolitical unrest and mistrust in centralized systems, caused by growing encroachment on freedoms and 2008’s Great Recession, will push investors to look for alternative systems, which many believe will be underpinned by blockchain technologies and thus Bitcoin.
Novogratz has also stated that institutional involvement in the cryptocurrency space will drive this space to new heights. Just look to Fidelity Investments, which just revealed that it’s rolling out its Bitcoin custody and trade execution services to clients with billions of dollars of assets under management.