Bitcoin's Current Trading Discounted by 41%, Projected Value at $122K According to Power-Law Model

Despite Bitcoin's (BTC) recent dip below $71,000, market analyst David asserts that the cryptocurrency is trading at a 41% discount to its long-term trend value, estimating its fair value at $122,762. Using a power-law valuation model, David's analysis focuses on the underlying mechanics, pointing out that the price action seems to be driven more by derivatives market dynamics such as hedging and liquidation-related selling. He also noted that the increasing leveraged exposure could potentially lead to sharp price fluctuations. Moreover, he indicated a key gamma level near $73,000, where price movements above or below this level could significantly impact volatility. Amid these conditions, the analyst estimated a 70% probability of a squeeze if the price begins to ascend.