Analyst Sam Bourgi wrote that a bitcoin prediction based on the Metcalfe Act suggests that the price tends to go back to 10.000 dollars.
Bourgi, editor-in-chief, "Bitcoin's price was a little bit on Sunday. If the salespeople are eager to test new bottoms in the short term, most likely the last move is nothing more than a dead cat bounce. However, in the long run, Bitcoin seems to tend to return to 10.000 dollars based on a regression model of the Metcalfe Act, "he wrote.
' Short-term 2800 – 3200 region possible '
Despite the recent efforts to recover, Bourgi said that Bitcoin is still under the control of bears, which means that the test of the 2.800 – 3.200 dollar support zone is in probabilities. "It is likely that this area will trigger a new wave of procurement, as it continues the bitcoin consolidation-evacuation-consolidation cycle," the analyst said.
Bourgi finally said:
"The final decline in the price of bitcoin brought about the speculation that digital money was traded far below the fair market value. This is also supported by the Forbes bitcoin price estimator, suggesting that Bitcoin's fair value is 4.900 dollars. The data is based on a regression model based on the Metcalfe Act, suggesting that the value of a network is proportional to the square of the number of users. Analyzing the number of unique active users and daily trading volumes, Forbes estimates that bitcoin should be over 10.000 dollars by the middle of 2019. Of course Bitcoin does not always behave according to basic analysis rules. It is important to note that Forbes expects active users and daily transaction volumes to return dramatically during the estimate period. Forbes says the estimator predicted the price of Bitcoin with a accuracy of up to 94 per cent between 2012-2017. "