WATCH: Powell Versus Bitcoin Price Log Curve | Daily TA August 26, 2022
August 26 2022 - 12:15PM
NEWSBTC
In this episode of NewsBTC’s all-new daily technical analysis
videos, we are looking at the Bitcoin logarithmic growth curve, the
Power Law Corridor, and the 200/100/50-week moving averages. Take a
look at the video below. VIDEO: Bitcoin Price Analysis
(BTCUSD): August 26, 2022 US Fed Reserve Chair Jerome
Powell’s speech today is already having an impact on markets,
with Bitcoin losing support at $21,000 and in danger of falling
deeper into a bear trend. With the crypto market in doubt, in this
video we zoomed out. Related Reading: WATCH: Will Powell’s Friday
Speech Send Bitcoin Soaring? Daily TA August 25, 2022 Log Growth
Curve Continues To Support Price Action In this zoomed out view we
are taking a closer look at the Bitcoin logarithmic growth curve. A
logarithmic growth curve increases quickly at the start but gains
decrease and become more difficult over time. The log growth curve
is closely tied to the law of diminishing returns. This type of
early growth forms naturally. For example, children learn more
easily than adults; when dieting, weight comes off faster to start;
or in contrast, beginner strength training gains stack up quickly
but over time plateau. Related Reading: Logarithmic Growth Curve
Charts Bitcoin Price At $170K in 2028 The log growth curve has
supported the entire history of Bitcoin price action and put a stop
to every bull market. On Black Thursday in March 2020 and on August
20 2015 Bitcoin left a wick below the log growth curve. Each time
resulted in a powerful bull run. According to legendary investor
Sir John Templeton, “The four most dangerous words in investing
are, this time its different” Is this time really different?
The log curve has never been broken | Source: BTCUSD on
TradingView.com Power Law Corridor Offers Alternative Take With
Lower Support Some might argue that the log curve is subjective –
it is. In the video, we’ve chosen to draw the curve across candle
closes allowing a wick below. Slightly adjusting to draw across
wicks creates more room at the bottom of the curve. Related
Reading: Power Law: Tracking Bitcoin’s Growth to $100K and Beyond
There is yet another longer-term growth model, called the Bitcoin
Power Law Corridor that is less subjective overall. Turning the
tool on aligns with both versions of the log curve. The 2018 bear
market bottom stopped at the same line we are at now, while the
Black Thursday bottom in 2020 fell to the level below. Bulls could
be ready to power-up! | Source: BTCUSD on TradingView.com A
Long-Term Look At The 200/100/50-Week MA For our final long-term
look at Bitcoin, we are analyzing the 200, 100, and 50-week moving
averages. Unfortunately, Bitcoin remains below the 200-week
moving average which is a negative sign. The moving average has
acted as bear market bottom support in the past and could be
working as resistance currently. The 100- and 50-week moving
averages are also about to form a death cross – which is the reason
for calling out this tool. In the past when the 100 and 50 week
moving averages cross in Bitcoin, the bottom was already in, and
the crypto market began to move up shortly thereafter. Once
again, is this time different? Is this time different? | Source:
BTCUSD on TradingView.com Learn crypto technical analysis yourself
with the NewsBTC Trading Course. Click here to access the free
educational program. All this week at Elliott Wave International is
Trader Education Week. Here is free access to five exclusive videos
from one of the world’s best Elliott Wave analysts. You can also
get the Elliott Wave book for free with a no cost signup. Follow
@TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram
for exclusive daily market insights and technical analysis
education. Please note: Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
EOS (COIN:EOSUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
EOS (COIN:EOSUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024