A new indicator, CTZ Bitcoin 200DMA Quantile Bands, has been developed by CryptoTradingZone (CTZ) for traders seeking a dynamic valuation framework for Bitcoin.
The indicator uses statistical percentile analysis to plot adaptive fair value bands around the 200-day moving average. This approach is different from traditional methods that use fixed multipliers, as it adjusts the band levels based on historical distribution of price-to-MA ratios over a configurable lookback window.
The bands are set at user-defined percentiles of the distribution multiplied back by the current 200DMA. This means the bands widen during volatile regimes and compress during ranging periods.