Bitcoin at $60k Shows Deviation Close to 2022 Bear Market Low
Bitcoin's price at $60,000 shows a -54.1% deviation from its power law trend, close to the -56.6% deviation seen on November 21, 2022, the worst day of the last bear market. The Z-score is -1.13σ versus -1.21σ, indicating Bitcoin is already in bear market territory, according to analyst Adam Livingston.
Bitcoin's current price of $60,000 is showing a significant deviation from its long-term power law trend, according to a tweet by analyst Adam Livingston. Specifically, the price is at a -54.1% deviation, which is close to the -56.6% deviation observed on November 21, 2022, during the worst day of the last bear market.
The deviation is measured by a Z-score of -1.13σ, a statistical indicator of how far the current price is from the expected trend. The worst day of the previous bear market had a Z-score of -1.21σ, suggesting that Bitcoin is already in a bear market phase at the current price level.
This analysis provides historical context for Bitcoin's current price movements, helping investors understand the severity of the current drawdown relative to past cycles. Monitoring further deviations from the power law trend could offer additional insights into potential future price action.