Indicator Overview

The indicator is defined as a modified version of the Realised Price, designed to more accurately represent the average cost basis per active investor. Statistically, it is modelled to trade near the middle of the Bitcoin price history, making it the ideal mean reversion model. It provides a clear central point of gravity for market activity, signifying the equilibrium price where profit and loss for the active market are balanced, making it a powerful reference for cycle analysis.

How To Use

The True Market Mean Price is primarily used as a dynamic mean reversion target. When the market price moves significantly above the Mean Price, the market is considered overextended and is highly likely to revert back down to this level. Conversely, when the market price falls significantly below the Mean Price, the asset is considered deeply oversold. This oversold condition typically encourages heavy accumulation by serious, long-term investors, marking a low-risk entry zone based on the mean reversion principle.