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BTC Power Law Bands

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BTC Power Law Bands

This indicator applies a Power Law model to Bitcoin’s price, based on the log-log relationship between time and market value.

The core idea is that Bitcoin does not grow randomly, but instead follows a long-term statistical corridor where price oscillates around a structural trend.

- The central line represents the estimated fair value over time
- Upper bands highlight potential overvaluation and euphoria zones
- Lower bands highlight undervaluation and asymmetric opportunity zones

The model uses logarithmic regression (log10) to estimate Bitcoin’s long-term trajectory since its inception.

Indicator zones:
- Deep Value Zone (blue): historically associated with macro bottoms
- Value Zone (green): fair value region
- Hot Zone (orange): overheated market conditions
- Mania Zone (red): extreme euphoria

Important:
This indicator is designed for long-term macro analysis and should not be used for short-term trading decisions. It provides a probabilistic framework, not a guarantee of future price behavior.

Use it as a structural guide to understand where Bitcoin sits within its long-term cycle.

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