Bitcoin PAI
Understanding the Bitcoin PAI Chart
The chart above displays the Power Amplitude Index (PAI), a proprietary timing model that measures the rhythm of Bitcoin's price flow. The index provides a clear signal on a scale from 0.0 (indicating extreme market contraction or fear) to 1.0 (indicating extreme expansion or euphoria).
The Golden Signal: PAI + Power Law
The Bitcoin PAI acts as our "tactical GPS," providing a short-term, data-driven view of market dynamics. Its greatest strength, however, comes from its complete independence from the Bitcoin Power Law—our long-term "strategic map."
When these two independent systems converge (for example, when the Power Law shows Bitcoin is undervalued while the PAI shows extreme price contraction), they create a "Golden Signal" of high conviction for the entire crypto market.
How to Interpret This Page
- The color-coded chart provides an at-a-glance view of the market's state. Deep blue areas historically represent periods of price contraction and potential accumulation zones, while bright red areas signal market expansion reaching euphoric levels, suggesting heightened risk.
This PAI model is the tactical layer of our comprehensive, two-tiered analytical framework. To learn how we combine it with the Power Law to make informed, data-driven decisions, please read our cornerstone guide.