Global Liquidity Power Law

Indicator Overview

This model refines Bitcoin's price trajectory using a power-law framework, adjusted for global liquidity trends. It integrates changes in liquidity, which reflects the total amount of money circulating in the global economy, to provide a probabilistic price range, with upper and lower bands reflecting potential market variability.

How To Use This Indicator

The bands reflect Bitcoin’s price range under varying liquidity conditions. The upper band signals overextension in price relative to liquidity, while the lower band suggests undervaluation, helping identify potential market extremes.

Created By

Alpha Extract in December 2024