⚜️#Deviation Bands in the Power Law : $BTC $USDC
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Deviation bands act as a dynamic channel surrounding the mathematical trend’s central line, allowing market excesses to be measured:
Upper Band (Euphoria Ceiling): Located near the channel’s upper limits (such as the 99% level), it defines the zone where the price diverges too far from its fundamental value due to mass speculation and bullish euphoria. Historically, it marks the optimal points to take profits.
Central Line (Fair Price): Follows the regression curve defined by the formula \log(\text{Price}) = k \cdot \log(\text{Time}) + C. It represents the theoretical equilibrium of Bitcoin network adoption over time.
Lower Band (Support or Floor): Located at lower levels (such as the 1% level), it marks the historical bottom of maximum market contraction or capitulation, serving as the asset’s strongest structural support. #btc $BTC
☕
Deviation bands act as a dynamic channel surrounding the mathematical trend’s central line, allowing market excesses to be measured:
Upper Band (Euphoria Ceiling): Located near the channel’s upper limits (such as the 99% level), it defines the zone where the price diverges too far from its fundamental value due to mass speculation and bullish euphoria. Historically, it marks the optimal points to take profits.
Central Line (Fair Price): Follows the regression curve defined by the formula \log(\text{Price}) = k \cdot \log(\text{Time}) + C. It represents the theoretical equilibrium of Bitcoin network adoption over time.
Lower Band (Support or Floor): Located at lower levels (such as the 1% level), it marks the historical bottom of maximum market contraction or capitulation, serving as the asset’s strongest structural support. #btc $BTC