BITCOIN POWER LAW MODEL CHART
The Bitcoin Power Law model is a long-term price forecasting tool that shows how Bitcoin's growth follows a power-law trajectory over time. Based on a log-log regression formula, it visualizes Bitcoin's price within a rising corridor defined by time-based support and resistance bands. This model helps highlight macro trends and BTC historical price consistency across bull and bear markets.
BTC Price
Power Law Mid Line
Power Law Upper Line
Power Law Lower Line
Bitcoin Power Law Theory Explained: What is Power Law Model and How to Read the Chart?
The Bitcoin Power Law Chart is a long-term, time-based price model that visualizes Bitcoin's historical and projected growth using a log–log scale, where both axes (time and price) are logarithmic. This unique approach smooths short-term volatility and reveals a structured pattern in Bitcoin's macro behavior.
At its core, the chart is built on a mathematical power function with the following formula:
where t is time in days since Bitcoin's genesis (2009), A is a scaling constant, and b is the slope derived from logarithmic regression on historical BTC data.
This regression creates a central curve, accompanied by upper and lower bounds representing typical deviation bands — forming a corridor within which BTC price has moved over time.
Unlike exponential models, the power law suggests Bitcoin's growth slows over time while still maintaining upward momentum. It helps traders, investors, and researchers:
• Analyze long-term support/resistance zones
• Identify overvalued (bull market) or undervalued (bear market) periods
• Set realistic future expectations without relying on short-term speculation
This chart does not aim to predict short-term price action but rather to visualize Bitcoin's natural price trajectory under continued global adoption. It is especially useful for long-term holders and those studying the fractal behavior of Bitcoin's market cycles.
At its core, the chart is built on a mathematical power function with the following formula:
Price = A × tb,where t is time in days since Bitcoin's genesis (2009), A is a scaling constant, and b is the slope derived from logarithmic regression on historical BTC data.
This regression creates a central curve, accompanied by upper and lower bounds representing typical deviation bands — forming a corridor within which BTC price has moved over time.
Unlike exponential models, the power law suggests Bitcoin's growth slows over time while still maintaining upward momentum. It helps traders, investors, and researchers:
• Analyze long-term support/resistance zones
• Identify overvalued (bull market) or undervalued (bear market) periods
• Set realistic future expectations without relying on short-term speculation
This chart does not aim to predict short-term price action but rather to visualize Bitcoin's natural price trajectory under continued global adoption. It is especially useful for long-term holders and those studying the fractal behavior of Bitcoin's market cycles.
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