Bitcoin opera below the Power Law curve
The weekly chart of Bitcoin indicates that the asset is still in a liquidation phase, trading significantly below the Power Law model projection. Technical analysis shows that the current price is far from the historical trend line that often marks the fair value of the asset in previous cycles.
The indicator data points to a negative standard deviation (Z-Score of -2.12), suggesting that Bitcoin is undervalued relative to its historical growth average. The model projects that the fair price should be close to US$ 219 mil, while the asset is trading at levels much lower.
This divergence between the market price and the mathematical projection is often interpreted as an accumulation opportunity for long-term investors, who are waiting for Bitcoin to return to its expected appreciation range. 📉📊
The weekly chart of Bitcoin indicates that the asset is still in a liquidation phase, trading significantly below the Power Law model projection. Technical analysis shows that the current price is far from the historical trend line that often marks the fair value of the asset in previous cycles.
The indicator data points to a negative standard deviation (Z-Score of -2.12), suggesting that Bitcoin is undervalued relative to its historical growth average. The model projects that the fair price should be close to US$ 219 mil, while the asset is trading at levels much lower.
This divergence between the market price and the mathematical projection is often interpreted as an accumulation opportunity for long-term investors, who are waiting for Bitcoin to return to its expected appreciation range. 📉📊
