Analyst Says Bitcoin Could Reach $400,000 With This Model
If this Bitcoin price model holds, one expert predicts a $400,000 high.
Bitcoin Long-Term Power Law May Show Next Top Location
Ali Martinez wrote on X on how the Long-Term Power Law may affect the next Bitcoin high. Bitbo established the âLong-Term Power Lawâ BTC pricing model.
The model has three lines, including the "power law," which is constructed from a linear regression of previous BTC prices. âThis power law is just a straight line to represent the correlation between Bitcoin's price and time,â Bitbo says of the model.
The model's other two lines are power law copies, although differently placed on the chart. One line is set beneath the power law so BTC's historical price remains above or touches it.
We name this model level the support line. The opposite line, the resistance level, limits bitcoin prices.
This chart displays Bitcoin's Long-Term Power Law trend over time:
Bitcoin's spot price is under power law, as seen in the graph. When it reached its new all-time high (ATH) earlier this year, the asset retested the line but failed. Despite recent negative movement, BTC is still over the model's support line.
Bitcoin made three significant peaks around the resistance line, according to the graph. The 2021 bull run top prevented the asset from reaching the level. It's unclear whether the current BTC cycle will follow the previous three.
Martinez said, âIf the Bitcoin Long-Term Power Law holds, the next market top might hit around $400,000!â since the resistance level will be at that level next year.
