Logarithmic band analysis: Bitcoin in the next bull market over $ 140,000?
Logarithmic band analysis: Bitcoin in the next bull market over $ 140,000?
Bitcoin’s next parabolic rally could push the price up to $ 141,173 based on a log band analysis. However, the journey to these highs could take a while as different levels of support are tested.
Bitcoin price prediction based on log band analysis
The analysis by Benjamin Cowen is based on a review of the current Bitcoin performance – particularly with regard to halving the block reward.
Bitcoin usually goes through very fast parabolic phases, the timing of which varies, however, and halving does not guarantee an immediate increase. Indeed, prices could remain unusually low in 2020 if BTC falls in one of the lower logarithmic bands.
But if BTC gets on track based on past performance, the six-digit high would be the next. A subsequent bear market can then wipe out the profits. The six-digit bitcoin price would also be prone to a 90% drop in the bear market, which would then drop to around $ 12,500, Cowen said.
BTC is traded today at $ 7,177 and is in a stagnant phase without the usual weekend rally. Trading volume has stabilized at around $ 22 billion in the past 24 hours. Other forecasts see price movement in a narrow range for 2020, possibly close to $ 10,000.
Blue: #bitcoin's path
Orange: average of blue
Green / Red: Metcalfe's law
Purple: bubbles and crashesWe're near orange now. pic.twitter.com/eMqqld7XMN
— Timothy Peterson (@nsquaredcrypto) December 20, 2019
Pivot trading strategy important when BTC changes behavior
Cowen believes new rallies are possible in 2022 or 2023. The next year remains too close to a depressing bear market, and traders might not be keen to push the price up. The analysis also warns that trading strategies should be adjusted as soon as the bitcoin price becomes unattractive.
No one knows if the next cycle is established – there is also a possibility that last December’s $ 3,200 mark was not ‘the low point of the cycle’, but only part of the third major BTC cycle. There is no clear consensus as to whether Bitcoin price has entered the next phase or is still going through the effects of the last bear market.
In almost all scenarios, a “HODL” strategy exposes traders to a potential 10X, which can be done in no time. But for that you would have to keep up with the noise as well as the bottom of the course.
