Prominent Bitcoin and cryptocurrency analyst Willy Woo recently shared a logarithmic price chart of Bitcoin created by technical analyst known as Awe and Wonder that suggests the dominant cryptocurrency is on track towards gradual recovery.
The chart, which dates back to 2010, evaluates the logarithmic regression of Bitcoin, covering three 80 percent corrections the asset experienced in the past eight years.
“Estimated BTC bottom via Logarithmic Regression analysis (below) to compliment Willy Woo’s own analysis, asserting that “$4,400 is the next real line of defense,” Awe and Wonder explained, adding, “the default assumption, takes on the meaning that nothing has changed and that this time is in fact no different. For this model, the default assumption is that the market will bottom at an equivalent deviation from the log trend line as it has in the past.
$4,400 Support Level Doesn’t Mean Bitcoin Will Test it
The price trend of an asset or currency is unpredictable and cannot be accurately demonstrated by a single technical chart. It is not possible to create one equation to satisfy all of the variables involved that affect the market and the psychology of investors in it.
But, the logarithmic chart of Awe and Wonder considers the adoption curve of Bitcoin as the main component of the asset’s growth rate, which increases the likelihood of the arc reflecting the long-term price trend of Bitcoin.
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