Introducing The Bitcoin Z-Signal – Bitcoin USD (Cryptocurrency:BTC-USD)

If you’re familiar with the BVIPE or the Bitcoin (BTC-USD) (COIN) (OTCQX:GBTC) Value Indicator, then the Bitcoin Z-Signal should be fairly straight forward to understand. In fact, the major difference between the Bitcoin Z-Signal and the BVIPE is that instead of plotting each metric independently, I have simply combined them into one.

I was hesitant to do this at first, because I was worried about input collisions (if we use X and Y to predict Z, but X and Y are correlated with each other, then you are basically double counting inputs). However, when operating on the larger BVIPE data set, I discovered that Excel’s regression analysis was smart enough to build a formula that not only improved the R^2 values from the BVIPE, but also lowered the standard error.

I think there’s a lot of value in this, since simpler data that is less often askew is a win-win for everyone. Let’s compare the stats (based on data through November 20, 2018).

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