Could Bitcoin Reach $130,000? Top Analyst Says It’s Still Undervalued

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bullish:

bearish:

Bitcoin (BTC) has recently rebounded by more than 20%, climbing from $80,000 to $94,000. However, according to Charles Edwards, founder of Capriole Investments, the rally may only be the beginning. Edwards believes the fair market value of Bitcoin—based on energy input—is closer to $130,000. If he’s right, BTC remains significantly discounted, with more upside potential ahead.

Energy-Based Valuation Suggests Bitcoin is Undervalued

Charles Edwards has pioneered a valuation model known as the “Energy Value” of Bitcoin. This metric estimates BTC’s fair price by calculating the amount of energy consumed during mining—a tangible cost that anchors the asset’s intrinsic value. Based on current data, Edwards puts Bitcoin’s fair price at a staggering $130,000, nearly 40% above its current level.

Supporting this claim, market data from analytics firm MicroMacro reveals that the average mining cost per Bitcoin is around $96,000—already higher than the current market price. This indicates that miners are operating at or near breakeven, reinforcing the notion that BTC remains undervalued despite its strong rally.

Technical Analysis: Bitcoin Faces a Pivotal Moment

From a technical perspective, Bitcoin is now testing a crucial resistance zone between $93,000 and $103,000—a range that has historically acted as a volatility magnet. A successful breakout and close above this level could pave the way for a swift move toward $100,000 and eventually higher psychological levels like $130,000.

But there’s a caveat. If Bitcoin fails to hold the $93,000 threshold, bearish momentum could pull it back toward the $81,000–$88,000 support band. A drop below the recent local low at $83,000 might signal a deeper correction, potentially dragging prices down to the $70,000 or even $60,000 range. Notably, the $65,000 level has emerged as a high-volume support area based on recent trading data.

Key Levels to Watch

Bitcoin’s ability to stay above $93,000 is now crucial. Holding this level increases the probability of a run toward $100,000—a price point loaded with psychological significance. A decisive break above $100,000 could create momentum that aligns with Edwards’ $130,000 projection.

Could Bitcoin Reach $130,000? Top Analyst Says It’s Still Undervalued = The Bit Journal

On the downside, any sustained movement below $88,000 would likely increase the risk of a return to the long-term consolidation zone between $60,000 and $70,000. In that region, $65,000 is a historically significant price point due to heavy accumulation during previous cycles.

The Bit Journal Perspective

At The Bit Journal, we continuously monitor emerging valuation models and expert forecasts to keep readers informed with timely and balanced insights. While Charles Edwards’ energy-based approach offers a unique lens into Bitcoin’s potential, investors should remain aware of the broader market context, including macroeconomic shifts, miner behavior, and regulatory developments.

As always, this article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own due diligence or consult with a certified financial advisor before making any financial decisions.

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