Bitcoin Long-Term Power Law Could Reveal Possible Location Of Next Top
In a new on X, analyst Ali Martinez has talked about what the Long-Term Power Law could say about the next potential Bitcoin top. The “Long-Term Power Law” here refers to a BTC price model created by .The model involves three lines, the main one being the “power law,” which is derived by taking a linear regression of the historical BTC price. “This power law is just a straight line to represent the correlation between Bitcoin’s price and time,” notes Bitbo in the model’s description.
As is visible in the graph, Bitcoin’s spot price is currently being traded under the power law. The asset retested the line earlier in the year when it set its new all-time high (ATH) but couldn’t find a break. Despite the recent bearish action, though, BTC still has some distance over the support line of the model.
The graph shows that Bitcoin set three of its major tops around the resistance line. However, the 2021 bull run top occurred before the asset could reach the level. Thus, it’s unknown whether or not the current BTC cycle will follow the lead of the earlier three.
“If the Bitcoin Long-Term Power Law holds, the next market top might hit around $400,000!” notes Martinez, based on the fact that the resistance level would assume a value around that mark next year.“If this Bitcoin cycle follows the last two, we could see a market top in about a year, around October 2025!” says Martinez.