$BTC According to the Bitcoin Power Law model, which describes Bitcoin's growth over time, the current Bitcoin price is much lower than its fair value.
- Summary:
- Current fair value: approximately $122,000
- Current price: about $79,000
- Deviation: minus 35.5% — meaning Bitcoin is in a historically "oversold" region.
The model uses an Ornstein–Uhlenbeck process (OU) to measure deviations and mean reversion (mean reversion). Historically, when the price reaches this level of deviation from fair value, a "strong rebound" (Snap-back) occurs.
- Half-life of correction: 133 days (Half correctio