Analyst: Logarithmic Chart Shows Bitcoin is on Track, $50,000 by 2021

Prominent Bitcoin and cryptocurrency analyst Willy Woo recently shared a logarithmic price chart of Bitcoin created by technical analyst known as Awe and Wonder that suggests the dominant cryptocurrency is on track towards gradual recovery.

The chart, which dates back to 2010, evaluates the logarithmic regression of Bitcoin, covering three 80 percent corrections the asset experienced in the past eight years.

The logarithmic chart of Awe and Wonder considers the adoption curve of Bitcoin as the main component of the asset's growth rate, which increases the likelihood of the arc reflecting the long-term price trend of Bitcoin.

The chart has taken the price movement of the digital asset since 2010, back when there was very little market activity, to properly demonstrate the growth curve of the cryptocurrency over the past nine years.

Since the logarithmic chart acknowledges the adoption rate as its main component, it is possible that the chart can accurately portray the trend of the asset in the years to come.

As Bitcoin undergoes its adoption S-curve it scribes a "Falcon-9 rocket trajectory" on the long range chart.

The analyst emphasized that it is crucial to understand the complexity of the speculative game and that no chart can exactly lay out the long-term price trend of an asset in the cryptocurrency market.

The chart has outlined $4,400 as the base support level of Bitcoin by early 2019.

The range of the chart places the likely target price of Bitcoin in January of 2019 to be in the range of $4,400 to $10,000.

Although the gap between the support level and the resistance level seems large, on several occasions throughout 2018, Bitcoin has increased from $6,000 to $10,000 within a 30-day period and as such, a high level of volatility for Bitcoin should be expected.