Short excerpt from a talk discussing characterizing deviations in a trajectory (likely Bitcoin price/metric) by subtracting a power-law fit and modeling residual oscillations. The speaker asserts that describing deviations from a power law is an effective way to capture oscillatory behavior and that many on-chain indicators rely on the existence of such deviations.
There are deviations on this trajectory, but in average, they kind of cancel. But if you want to go deeper now we can look at how these deviations are characterized. And you can do it using the power law, because you subtract the power law and then whatever is left over, you can fit it and you can describe it and characterize these oscillation in terms of a deviation from the power law is the best way. Everybody, you know, almost all the other indicator that you find out there, even the on chain ones, are actually possible because these things exist.
