BTC IndicatorsProven Cycle Signals

Power Law Oscillator

Cool

Fits a power law regression to Bitcoin's entire price history on a log-log scale (log price vs log days since genesis). The oscillator shows where the current price sits as a percentile of its historical deviations from the power law trend.

Bitcoin's price has followed a power law since inception. When the oscillator drops below 20, price is far below the long-term trend — historically the best accumulation zones. Above 80 signals euphoria.

Power Law Oscillator (%)(left axis)
(right axis, log)BTC Price (USD)

Methodology

A linear regression of log10(price) on log10(days since genesis) gives the power law trend: price = 10^a × days^n. The residual (log price - log trend) is computed daily, then ranked via an expanding percentile (0-100%). Low readings mean price is well below trend; high readings mean price is stretched above trend.

Zones

Deep Value (< 20%)Cool (20 - 40%)Neutral (40 - 60%)Warm (60 - 80%)Overheated (> 80%)

Last updated: 2026-03-23 | Data source: CoinMetrics Community