Short video commentary (speaker: Kosta Ouzas) on bitcoin price correction modeling. The speaker argues that instead of guessing correction sizes, a power-law-based support line provides a reference that bitcoin historically has not violated — including during the COVID crisis — and suggests this support may relate to bitcoin's cost of production.
How big they are going to be, right? It's a mathematical format and if you don't have a point of reference, you're going to guess, you're going to say, okay, maybe the worst correction that we could have could be 20%, 30%, something like that. These are most of these systems similar to this approach, right. Are created. Our secret sauce is that we use the power law based, you know, with power law support, with line that I show you before that we never violate bitcoin seems never to violate because we arrive there even during COVID We arrive there and we bounce back. That was one of the strongest crisis that, you know, we had in recent times that never happened that we went below that. So it seems to be something fundamental. There are also theoretical reason to think that this fundamental because it seems that we have a support line because it's associated with the cost of producing bitcoin.
