BTC Power of Law x Central Bank Liquidity

2024년 9월 20일

This indicator combines Bitcoin's long-term growth model (Power Law) with global central bank liquidity to help identify potential buy and sell signals.

How it works:
Power Law Oscillator: This part of the indicator tracks how far Bitcoin's current price is from its expected long-term growth, based on an exponential model. It helps you see when Bitcoin may be overbought (too expensive) or oversold (cheap) compared to its historical trend.

Central Bank Liquidity: This measures the amount of money injected into the financial system by major central banks (like the Fed or ECB). When more money is printed, asset prices, including Bitcoin, tend to rise. When liquidity dries up, prices often fall.

By combining these two factors, the indicator gives you a more accurate view of Bitcoin's price trends.

How to interpret:
Green Line: Bitcoin is undervalued compared to its long-term growth, and the liquidity environment is supportive. This is typically a buy signal.
Yellow Line: Bitcoin is trading near its expected value, or there's uncertainty due to mixed liquidity conditions. This is a hold signal.
Red Line: Bitcoin is overvalued, or liquidity is tightening. This is a potential sell signal.
Zones:
The background will turn green when Bitcoin is in a buy zone and red when it's in a sell zone, giving you easy-to-read visual cues.

2024년 9월 20일

릴리즈 노트

Now with central bank money supply histogram

2024년 9월 20일

릴리즈 노트

Added some emoji for better visualization

2024년 9월 21일

릴리즈 노트

Fixed bug with emojis

2024년 9월 22일

릴리즈 노트

Clearer high prob buy zones