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Pricing Meanreversion Index Meanreversion Index

Bitcoin

The Mean Reversion Index measures how far price has deviated from a long-term mean model and its tendency to revert.

Why it matters

It flags overextensions likely to snap back toward fair value.

How it is built

Price deviation from a long-term mean is normalized into an oscillator.

What to watch

Extreme readings signal stretched conditions with elevated mean-reversion probability.

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