Bullish Energy Value Theory: Bitcoin's Price Range Presents Long-Term Buying Opportunity, Says Capriole Investments Founder
Summary:
Bitcoin's price is trading within a tight range, leaving traders uncertain about its next move. Charles Edwards, founder of Capriole Investments, believes that the current price presents a buying opportunity based on Bitcoin's production cost and energy value theory. The theory suggests a fair value price of $47,200, with a floor price estimation of $23,000. However, Edwards notes that the assumption of the rally price stopping at fair value has never been true in the past.
Bitcoin price is currently stuck in a narrow range between $25,500 and $26,500, leaving traders uncertain about its future direction. However, Charles Edwards, the founder of Capriole Investments, sees this as a prime opportunity for long-term buying. Edwards bases his view on Bitcoin's production cost and energy value. According to Capriole Investments' energy value theory, Bitcoin's fair value price is estimated to be $47,200. Edwards emphasizes that Bitcoin's production cost sets a floor price estimation of about $23,000, with a 100% hit ratio. Although the trade carries a risk reward ratio of 1:5, Edwards acknowledges that it assumes the rally price would stop at fair value, which has never been the case.
Published At
9/8/2023 5:45:55 PM
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