[Analysis] "Bitcoin Has Further Upside Potential According to Log Indicator"

Suehyeon Lee

Summary

According to the 'Power Law Divergence Indicator,' Bitcoin (BTC) has not entered the overheated phase and still has room to rise further.
The indicator shows that while Bitcoin's price is above the long-term trend line, it has not reached the bubble stage seen in past cycles.
The report forecasts that large-scale institutional capital inflows or positive regulatory decisions could lead to a sharp price surge, causing the indicator to enter the bubble area.

According to the 'Power Law Divergence Indicator,' which analyzes Bitcoin's (BTC) long-term growth trends, the market has not yet reached an overheated stage, indicating that there is further potential for upside.

On the 2nd (local time), CryptoQuant contributor Arab Chain said, "According to the Power Law Divergence Indicator, the current Bitcoin price is above the long-term trend line, but it has not reached the red zone, which signified the overheated range in past cycles. The divergence levels also remain near neutral to positive, indicating that it is not at the bubble stage."

He added, "In this cycle, price movements have been more stable than before, showing a gradual upward trend. While prices are likely to continue rising gradually, if there is massive institutional capital inflow or positive regulatory decisions, prices could shoot up rapidly and the indicator could enter the bubble area."

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