Intra-Cycle Valuation Analysis
The Intra-Cycle indicator measures Bitcoin's current valuation position within market cycles, providing normalized scores to identify overbought and oversold conditions based on intra-cycle dynamics.
Understanding Intra-Cycle Valuation
What is Intra-Cycle Valuation?
The Intra-Cycle Valuation indicator analyzes Bitcoin's price position within ongoing market cycles using a 7-day moving average score. This score reflects whether Bitcoin is trading at levels historically associated with cycle tops (overbought) or bottoms (oversold).
How to Interpret the Signals
When the Score MA exceeds 0.25, the market is considered overbought (red zones on the chart), indicating elevated risk and potential for price corrections. Conversely, when the Score MA falls below -0.25, the market enters oversold territory (green zones), historically representing accumulation opportunities. The neutral zone between these thresholds suggests balanced intra-cycle positioning.
Market Context
This indicator is particularly useful for identifying short to medium-term valuation extremes within larger market cycles. The colored zones on the price chart provide visual confirmation of periods when Bitcoin has historically been overvalued or undervalued relative to its intra-cycle dynamics, helping traders and investors make informed decisions about entry and exit points.