Some traders are afraid of Bitcoin price predictions and technical analyses — and for a good reason. Over time, Bitcoin has proven to be volatile if given the right conditions. One man claims he can predict this coin’s flux, and uses bacteria to illustrate the process.
Bitcoin Predictions, In General
While you can’t really think this in terms of black or white, it seems obvious that only a certain category of crypto enthusiasts venture to accurately forecast the price of Bitcoin (BTC) and other cryptocurrencies. Besides, there’s no “better” or “worse” way of doing it: experience and vast market knowledge are valuable, as are cold stats. What matters more is the person who does it and the logic underpinning their decision.
Despite all that hassle, not everyone relies on predictions anyway — in fact, predictions often bring the author criticism. That’s why talking numbers is a safer bet: no one can blame it on the numbers. Yet, here’s an original one: a social scientist describing Bitcoin’s price as a logarithmic parable based on patterns seen in bio-science.
Bitcoin’s Price Based on a Biological Pattern
After all, it’s not impossible. Traders are biological beings, too. Their decisions and the thinking process behind them are a biochemical reaction in the brain. Could maths just explain everything, in the end? Well, they say it’s the key — and it could be here as well.
As reported by Money Morning, Prateek Goorha’s formula to predict Bitcoin’s price is not that far-fetched. His inspiration, however, is quite unconventional. Goorha thinks that the Bitcoin chart resembles the reproductive pattern observed in bacteria: Lag — log — station — death.
The first phase sees the bacteria adapt to the conditions of a given environment. The second is characterized by exponential growth: the bacteria divides and clones itself until it reaches a boundary where the environment can’t sustain any more individuals. Following this stage, the already existing bacteria feed on the existing resources until depletion.
Of course, when there’s nothing left to feed on the bacteria dies — but Goorha didn’t mention this phase, presumably finding it irrelevant to cryptocurrency. The same cycle is repeated by most living organisms and some scientists even predict that human lives propagate following the same pattern.
What Does This Have To Do With Bitcoin’s Price?
Well, scientists like maths, and so do traders. They should do, at least. They translated the pattern above into a mathematical formula. Goorha suggests that the price of Bitcoin followed exactly the same pattern as bacteria multiplication so far and is sure that its value will continue doing so in the future.
According to Goorha’s prediction, Bitcoin will see $20,000 again without a doubt. In fact, he predicts that a long-awaited bull-run is just around the corner. The highs of this new rush will reach as far as $50,000, and future races could bring Bitcoin as high as $250,000. Distinct from typical technical analyses, Goorha used a different set of parameters. If you look on the left side of his chart, you’ll see what he meant by “exponential” growth.
To what extent do you think this parable can account for the price movements of Bitcoin? Let us know in a comment below!
Image courtesy of Money Morning, Shutterstock, Twitter/@goorha.