The main tool the researchers used to estimate the price is a Price/Miner’s Breakeven Cost multiple (P/BE). Operating miners is a costly venture as they require electricity, maintenance, cooling, etc. The equipment itself is often expensive to invest in. P/BE is a ratio that measures coin price compared to miner’s breakeven cost.
In a note published by Fundstrat, the company argues that “the Price/Miner’s Breakeven Cost multiple has proven a reliable long-term support level, and further, that the likely trajectory of future mining infrastructure growth should underpin bitcoin price appreciation into year-end 2019″. They have observed a P/BE multiple to be on average 1.8. As the company expects Miner’s Breakeven Cost to rise in the future, they assume that the price should rise accordingly. Their estimates put Bitcoin price in the $20,000-$64,000 range by the end of 2019.