The Golden Ratio MultiplierBy Philip Swift
As Bitcoin continues to progress on its adoption journey, we learn more about its growth trajectory.
Rather than Bitcoin price action behaving like a traditional stock market share price, we see it act more like a technology being adopted at an exponential rate.
This is because Bitcoin is a network being adopted by society, and because it is decentralised money with limited supply, its price is a direct representation of that adoption process.
There are a number of regression analysis tools and stock to flow ratio studies that are helping us to understand the direction of Bitcoin’s adoption curve.
The new tool outlined in this paper brings an alternative degree of precision to understanding Bitcoin’s price action over time. It will demonstrate that Bitcoin’s adoption is not only following a broad growth curve but appears to be following established mathematical structures.
In doing so, it also:
Accurately and consistently highlights intracycle highs and lows for Bitcoin’s price.
Picks out every market cycle top in Bitcoin’s history.
Forecasts when Bitcoin will top out in the coming market cycle.
To begin, we will use the 350 day moving average of Bitcoin’s price. It has historically been an important moving average because once price moves above it, a new bull run begins.
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