Bitcoin Power Law

The Bitcoin Power Law brings Giovanni Santostasi's power-law theory straight onto the chart: daily Bitcoin closes plotted on double-logarithmic axes and wrapped in a precision-fit regression channel. It is a long-term cycle model reduced to essentials — one power-law growth curve with symmetric bands scaled by the fit's root-mean-squared error — splitting Bitcoin's history into discounted, fair-value, and overheated territory. It is calibrated exclusively for the daily BTCUSD chart; other tickers or timeframes invalidate the calculation.

How to Trade the Bitcoin Power Law?

• Lower channel (accumulation): historically aligned with cycle lows — the zone long-horizon entries and DCA plans watch.
• Middle channel (fair value): neutral trajectory — monitor for breakouts or mean-reversion here rather than chase.
• Upper channel (overheated): has coincided with parabolic blow-offs and cycle tops, a caution area for profit-taking or tightening stops.
• Halving markers: dotted vertical lines locate each halving against the channel's geometry.

Sharp departures into the upper band have tended to revert, so the practical discipline is watching where price sits inside the channel rather than reacting to headlines. For a closer look at recent action, the linear-time option trades some channel precision for resolution.

Bitcoin Power Law Settings

• Start Calculation (default 15 Jul 2010): the first day included in the regression.
• Use Linear Scale for X-Axis: swaps log(time) for calendar time — higher short-term resolution, less exact fit.
• Show Regression Line: toggles the central trend line, with a color picker.
• Mult 1-4 (defaults +1, +0.5, -0.5, -1): the channel multipliers, each with line and fill options; tighter values give faster reads, wider ones capture macro swings.
• Style: price line color and width, auto color, and the halving markers.

Frequently Asked Questions

Can I use it on other assets or timeframes?

No. The regression is purpose-built for daily BTCUSD data; on any other ticker or timeframe the channel placement turns misleading.

How does it relate to the Bitcoin Power Law Clock?

Same theory, different lens. This build shows the regression corridor through time, while the Bitcoin Power Law Clock winds the same dynamics around a clock face to read cycle phase. The channel answers "how stretched"; the clock answers "how late".

What does the Bitcoin Power Law cost?

Nothing — it is free on the LuxAlgo Library, added from this page, and can be opened in LuxAlgo's AI, Quant, directly from here.