Bitcoin analyst and Cryptocurrency Awe and Wonder suggests that Bitcoin is on track to reach new highs. The expert decided to share a graphic in which he shows how Bitcoin has evolved since 2010.
In the tweet, the author wrote that nothing has changed and that this bear market is no different from the other bear markets in the past. Furthermore, he explains that the market will end up with an equivalent deviation from the trend line of the log.
The default assumption assumes the meaning that nothing has changed and that this time it is not actually different. For this model, the hypothesis of default is that the market will end with an equivalent deviation from the trend line of the log as in the past. pic.twitter.com/S2fy54rtDf
– Awe_andWonder (@Awe_andWonder) 29 September 2018
Awe and Wonder states that the estimated BTC fund using a logarithmic regression analysis shows that $ 4,400 is the next real line of defense. The graph expects this value to be achieved close to January 15, 2019.
Moreover, the author explains in very simple terms that considering R², the regression model can explain .91 of the variation between the price of bitcoins and two variables: adjusted on the volume of chain transactions and on active addresses. He did not mention why he decided to select these variables, however, we assume they show adoption and usability.
Furthermore, it is important to remember that there are many other variables and that there is no model that can take everything into account. But this analysis, considering the important components linked to the growth rate of Bitcoin, has been explained and built very well. Furthermore, as the chart takes into account the adoption of Bitcoin, it could eventually provide accurate information on the future market trend.
Another cryptanalyst, Willy Woo, has commented on the graphics uploaded by Awe and Wonder and said that he can provide clues as to where we are in the price cycle.
While Bitcoin suffers its adoption S curve, it describes a "Falcon-9 rocket trajectory" on the long-range graph. If we measure the deviation from this arc, it provides clues as to where we are in the price cycle.[Graficodi[Chartby[Graficodi[Chartby@Awe_andWonder] pic.twitter.com/YQF2Oiocf9
– Willy Woo (@woonomic) 29 September 2018
The analyst then commented:
"In this case, BTC is not the typical stock price, it's a speculative game of traders riding an adoption curve, speculative gambling is complex, but adoption rates are more predictable. thesis, mapping the deviation between two. "
In January 2019, the chart shows that the price of Bitcoin could be traded between $ 4,400 and $ 10,000 dollars.
There are several experts like Tom Lee and Mike Novogratz who have shown their support for Bitcoin. Both believe that in the future Bitcoin will reach new highs and will exceed $ 20,000.
At the moment, Bitcoin is trading close to $ 6.580 and has a market capitalization of $ 113.79 dollars.