Indicator Overview

The Bitcoin Price ATH Drawdown indicator calculates Bitcoin’s percentage decline from its all-time high (ATH), on a gradient from green (near 0% at cycle peaks) through yellow to deep red (extreme drawdowns beyond -80%). This provides a clear measure of market corrections relative to historical highs, highlighting the depth and duration of bear phases. Bitcoin’s price is overlaid on a secondary logarithmic axis, allowing direct comparison between absolute levels and relative declines to contextualise cycle maturity and recovery potential.

How To Use

Deep red extremes below -70% often signal capitulation and prime accumulation zones at cycle bottoms, while persistent green near 0% warns of overextension and potential reversals at tops. Traders monitor rapid recoveries from lows as bullish confirmations for entries, or prolonged shallow drawdowns as signs of weakening momentum. Use zero-line crossings to gauge regime shifts, upward breaks indicate building strength, downward ones suggest increasing downside risk, enhancing timing and risk management in Bitcoin’s multi-year cycles.