Crypto Trading Analyst Uses Bitcoin Logarithmic Chart To Conclude $50,000 Price In Next 3 Years
Bitcoin and cryptocurrency analyst Awe and Wonder suggests that Bitcoin is on track to reach new all-time highs. The expert decided to share a graphic in which he shows how Bitcoin evolved since 2010.
In the tweet, the author wrote that nothing has changed and that this bear market is not different than the other bear markets experienced in the past. Furthermore, he explains that the market will bottom at an equivalent deviation from the log trend line.
Awe and Wonder says that the estimated BTC bottom using a Logarithmic Regression analysis shows that $4,400 is the next real line of defense. The chart projects that this value should be reached close to January 15, 2019.
Moreover, the author explains in very easy terms that considering R², the regression model can explain .91 of the variation between bitcoin’s price and two variables: adjusted on chain transaction volume and active addresses. He did not mention why he decided to select these variables, however, we assume that they show adoption and usability.
Additionally, it is important to mention that there are several other variables and that there is no model that can take into account everything. But this analysis, considering important components related to Bitcoin’s growth rate has been very well explained and built. Furthermore, as the chart takes into account Bitcoin adoption, it could eventually give accurate information about the future trend in the market.
Another cryptoanalyst, Willy Woo, commented the graphic uploaded by Awe and Wonder and said that it can provide clues about where we are in the price cycle.
As Bitcoin undergoes its adoption S-curve it scribes a "Falcon-9 rocket trajectory" on the long range chart. If we measure the deviation from this arc, it provides clues into where we are in the price cycle. [Chart by @Awe_andWonder] pic.twitter.com/YQF2Oiocf9
— Willy Woo (@woonomic) September 29, 2018
The analyst then commented:
“In this case, BTC is not your typical stock price. It’s a speculative traders game riding on top of an adoption curve. The speculative game is complex, but rates of adoptions are more predictable. In my opinion, the chart runs on this thesis, mapping the deviation of between two.”
In January 2019, the chart shows that Bitcoin’s price could be traded between $4,400 and $10,000 dollars.
There are several experts such as Tom Lee and Mike Novogratz that have shown their support to Bitcoin. Both of them believe that in the future Bitcoin will reach new all-time highs and surpass $20,000 dollars.
At the moment, Bitcoin is being traded close to $6,580 and has a market capitalization of $113.79 dollars.