Indicator Overview

The Bitcoin Power Law model establishes the long-term, statistically derived "Fair Value" of Bitcoin using a power-law regression where price is plotted logarithmically against the number of days since the 2009 genesis. The indicator displays this Fair Value as a white trend line defined by a user-selected slope (Base, Bull, or Bear), reflecting different macro-adoption speeds. The primary visual output is the historical Bitcoin price, which is overlaid on this logarithmic-scaled chart and color-coded based on its value relative to its all-time range. The model includes projections (a dotted white line) extending the Fair Value trend based on a user-defined number of days.

How To Use

The indicator’s central function is quantifying the current price's position relative to the long-term trend. The dedicated Deviation Table provides the immediate, objective signal, showing the price deviation both as a percentage and as a dollar amount. Negative deviations (price below the white line) signal undervaluation and historically profitable accumulation zones, while positive deviations (price above the white line) signal high valuation or periods of euphoria. Traders utilise this model to identify high-conviction buying opportunities when the price is significantly below the trend line and to manage risk when the price is far above it, serving as a robust macro-cycle guide for Bitcoin's structural adoption curve.