While Bitcoin currently shows no signs of upward momentum or any signs of life at all, which undermines its chances for future growth, I came across an interesting valuation model from Bitwise suggesting that a target price of $1.3 million for BTC by 2035 might even be too conservative.

The model is based on the idea that Bitcoin's market capitalization relative to gold—often used as a benchmark—could rise from the current 9% to 25%. Even this increase would be sufficient to push the price above $1,000,000 per coin.

Furthermore, the company does not account for the potential growth of gold's market capitalization, which is expected to continue increasing. If gold's price rises even further, Bitcoin's valuation of $1.3 million may seem even more modest.

Of course, making such long-term forecasts is a thankless task considering the unpredictability of the crypto market. However, the underlying idea in the model of capital reallocating from gold to Bitcoin appears quite logical. Bitcoin has several advantages over gold, such as ease of storage and transfer, making it a more attractive asset for the younger generation of investors. Additionally, institutional investors are increasingly showing interest in Bitcoin, which also contributes to its long-term growth.

However, it's important to remember that this is just one possible scenario, and Bitcoin's future remains uncertain.

Trading recommendations

Regarding the technical outlook for Bitcoin, buyers are currently targeting a return to the $90,800 level, which opens a direct path to $93,000, and from there it's just a step away to $95,000. The furthest target will be the peak around $97,300, with a breakthrough at this level indicating attempts to return to a bull market. If Bitcoin falls, I expect buyers at the $88,100 level. A move below this area could quickly drag BTC down to around $85,800, with the furthest target being the $83,200 region.

As for Ethereum's technical picture, a clear consolidation above the $3,233 level opens a direct road to $3,349. The ultimate target will be the peak around $3,474, with a breakthrough indicating strengthening bullish sentiment in the market and renewed interest from buyers. If Ethereum falls, I expect buyers at the $3,126 level. A retreat below this area could swiftly push ETH down to around $3,023, with the furthest target being the $2,924 region.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.