BITCOIN POWER LAW OSCILLATOR
Where is Bitcoin in its long-term range?
Bitcoin's price almost always sits between a long-term floor and ceiling. This dial shows where it sits today, from cheap and washed-out at the bottom to stretched and expensive at the top.
The dial runs from the floor of Bitcoin's long-term range (−1) to the ceiling (+1), with the trend line itself at the middle. Above the middle is the stretched side; below it, the washed-out side.
Where is Bitcoin in its long-term range?
Near the bottom of the rangeBitcoin is down near the floor of its long-term range — the washed-out side, where past cycles have found their footing.
How far up the range is that?
About 22% of the way up its long-term range — 0% is the floor, 100% is the ceiling.
What’s changed lately?
- Lately it has been sliding down the range toward the floor.
- It is sitting on the cheap side of the middle.
What would change this read?
- If it climbs toward the top of the range, it moves into the stretched zone that has marked past peaks.
- If it sinks toward the bottom, it enters the cheap zone where past cycles have bottomed out.
Understanding Power Law Oscillator
The Power Law Oscillator takes the same long-term trend corridor and squeezes it into a single dial that runs from the floor of the range to the ceiling. The middle is the trend line itself.
When the dial sits low, price is in the cheap part of its long-term range — where past cycles have found their footing. When it sits high, price is stretched toward the top of the range, the way it has been near past peaks.
It's the simplest way to read the long-term trend model at a glance: one number for whether Bitcoin is cheap, fair, or stretched against its own long-term path. A guide, not a guarantee — best used alongside the other cycle measures.