Bitcoin Long Term Power Law

This chart is inspired by @Giovann35084111's post on reddit.

Bitcoin Long Term Power Law Explained

This chart is derived by taking two bands of bitcoin prices.

- A resistance price above the current price
- A support price below the current price

These resistance and support bands were derived by taking a linear regression of the historical bitcoin price to derive a “power law”. This power law is just a straight line to represent the correlation between bitcoin’s price and time. This line is then perfectly copied (including its slope) twice. With these two new lines,

- One is lowered such that the historical bitcoin price is always equal to or greater than the prices hitting that line - the support line.
- One is raised such that the historical bitcoin price is always equal to or less than the prices hitting that line - the resistance line.

How to Interpret the Bitcoin Long Term Power Law Chart

Using this chart, two conclusions (or perhaps, assumptions) are made.

1. The price will reach $100,000 per bitcoin no earlier than 2021 and no later than 2028. After 2028, the price will never drop below $100,000.
2. The price will reach $1,000,000 per bitcoin no earlier than 2028 and no later than 2037. After 2037, the price will never drop below $1,000,000.

As always, the logic of this chart and the assumptions derived from it depend on bitcoin’s previous performance being indicative of the future. That is always the case when relying on any sort of linear regression. However, unanticipated events may drastically alter that behavior in the future, so one should not take the price predictions made by this chart as gospel.