Transcript excerpt from a talk analyzing Bitcoin price behavior using a model that separates an overall 'core power law' trend from an oscillatory component. The speaker describes two regimes: a turbulent-flow region where the price oscillates above and below a threshold (a light-blue line) producing strong corrections, and a core power-law region below the line where prices usually remain.
It's difficult to keep in one single model all these components. So it doesn't do a perfect job. The real bottom is really the black line, but it contains supposed to contain this oscillatory movement where we go above a blue line, this light blue line, and then we go below the blue line. So basically there are two regions, right? This is what is indicated in red here. There are this region, we call it the turbulent flow. And then there is the core power law. That is when we are below the blue line and we usually stay there pretty consistently. There have been few violations like here and here, but usually we cross it or we touch the blue line. Then there is a strong correction.
