🪙 ₿itcoin Market Analysis

2026-02-16 12:56:26 UTC
Data through: 2026-02-16 UTC
Regime: Downtrend (Medium Volatility) Cycle: Mid Bear Signal: Fair Value (Neutral) Sentiment: Fear
Spot Price
$69,375.90
📖 How to Read This Report (New to Bitcoin Investing?)

Welcome! This report analyzes Bitcoin using multiple data sources and prediction models. Here's what you should focus on:

1️⃣ Start Here
Read the Overall Valuation Signal and Key Takeaways sections. These summarize everything in simple terms.
2️⃣ Understand Context
Check Key Market Metrics to see if Bitcoin is expensive or cheap, trending or sideways, volatile or calm.
3️⃣ Look Ahead
Review the Price Projections to understand possible future scenarios. Remember: these are probabilities, not certainties.
4️⃣ Dive Deeper (Optional)
Explore Valuation Models and Risk Metrics if you want more detailed analysis. Each has explanations.

💡 Tip: Look for the "What this means:" sections throughout the report - they explain everything in plain English.

Overall Valuation Signal

What this means: This is our overall recommendation based on multiple factors including Bitcoin's long-term growth trend, current risk levels, and network fundamentals. Think of it as a "traffic light" for your investment decisions.

Fair Value (Neutral)
Fear & Greed Index

What this means: This measures market emotions on a scale from 0 (extreme fear) to 100 (extreme greed). When investors are extremely fearful, it may signal a buying opportunity. When everyone is greedy, it might be time to be cautious. Markets often swing back to the middle after reaching extremes.

Fear
Key Market Metrics

These are the most important numbers to understand Bitcoin's current market condition. Think of these as your "dashboard" for making investment decisions.

Valuation Score
0.48

Overall attractiveness score from 0 to 1. Above 0.7 = bullish, below 0.3 = bearish.

Market Regime
Downtrend (Medium Volatility)

Is Bitcoin trending up (bull), down (bear), or moving sideways? This helps you choose your strategy.

Cycle Phase
Mid Bear

Bitcoin historically moves in ~4-year cycles. Knowing where we are helps set expectations.

Mayer Multiple
0.69

Price vs. 200-day average. Below 0.8 = potential buy zone, above 2.4 = potentially overheated.

NVT Ratio
481.80

Like a P/E ratio for Bitcoin. High values suggest price may be ahead of actual usage.

Volatility
55.8%

How much the price swings in a year. Higher = more risk, but also more opportunity.

Price Analysis & Trends

Understanding where Bitcoin's price has been and how it compares to its long-term growth pattern. These charts help you see if we're in a cheap or expensive period.

Price History & Power-Law Trend

What you're seeing: The actual Bitcoin price (colored line) compared to its long-term "fair value" trend (the mathematical model line). When the price is far below the trend line, Bitcoin may be undervalued. When it's far above, it may be overvalued. This is like comparing a house price to the neighborhood average.

Drawdown from All-Time High

What you're seeing: This shows how far Bitcoin has fallen from its highest price ever. For example, -50% means Bitcoin is half the price of its peak. Bigger drawdowns often represent better buying opportunities, but also indicate higher risk. Bitcoin has historically recovered from all drawdowns, but past performance doesn't guarantee future results.

Historical context: Bitcoin has experienced multiple 70%+ drawdowns in its history, but has always eventually reached new all-time highs.

Valuation Models

Different ways to determine if Bitcoin is cheap or expensive right now. These models have historically identified good buying and selling zones.

Mayer Multiple History

What you're seeing: This compares today's price to the average price over the last 200 days. It's like comparing today's temperature to the average for this time of year. Values below 0.8 have historically been good times to buy (green zone), while values above 2.4 have often preceded price corrections (red zone).

Buy Zone (<0.8): Historically good accumulation opportunities    Sell Zone (>2.4): Historically preceded corrections

Power-Law Residual Z-Score

What you're seeing: This measures how far Bitcoin's price has deviated from its long-term growth trend, similar to how we might measure if someone's height is unusual compared to the average. Scores above +2.0 suggest Bitcoin is expensive relative to its historical pattern, while scores below -1.0 suggest it's cheap. Think of this as a "temperature gauge" for Bitcoin's valuation.

How to read this: The further the line is from zero, the more extreme the valuation. Positive numbers mean potentially overvalued, negative numbers mean potentially undervalued.

Risk & Future Projections

Understanding potential risks and what the future might hold. These tools help you decide how much to invest and what outcomes to expect.

Rolling Volatility (30d)

What you're seeing: How much Bitcoin's price has been jumping around recently. High volatility means bigger daily price swings (more risk, but also more opportunity). Low volatility means calmer, more stable price movements. Most investors prefer to buy during low volatility periods.

Risk Metrics

Professional risk measurements that help you understand potential losses and returns. These numbers help you decide how much of your portfolio should be in Bitcoin.

VaR (95%)
25.30%

Maximum expected loss on a bad day (95% confidence). Lower is less risky.

CVaR (95%)
31.90%

Average loss when things go really bad. Shows tail risk severity.

Sortino Ratio
-1.06

Return per unit of downside risk. Higher is better. Above 1.0 is good.

Omega Ratio
0.88

Probability-weighted gains vs losses. Above 1.0 means gains outweigh losses.

Confidence & Risk Posture

What this means: How confident we are in our forecasts and what kind of risk environment we're in. High confidence means our models are reliable. Risk posture tells you whether to be aggressive or defensive with your portfolio.

Confidence
Medium

How reliable our predictions are based on historical accuracy.

Risk Posture
Balanced

Suggested approach: Aggressive (more risk), Balanced, or Defensive (less risk).

Mempool & Fee Pressure

What this means: Real-time data about Bitcoin network activity. The mempool is like a waiting room for transactions. When it's crowded, fees go up. This helps you understand current network demand and can be a proxy for market interest in Bitcoin. (Data from local node)

Backlog
4.3 vMB

20,392 pending transactions waiting to be confirmed

Fastest Fee
1 sat/vB

Pay this for quick confirmation. Lower in 30m: 1 sat/vB · 60m: 1 sat/vB

Median Fee
0.16 sat/vB

Middle fee rate. Range of fees: 135.58 sat/vB

Difficulty Adjustment
73.1%

Mining difficulty expected change: 14.47%

History window: 1462 days (2022-02-16 → 2026-02-16).

Mempool stats source: fallback (4y).

LSTM training window (overlap only): 2734 days (2018-08-23 → 2026-02-15).

AI Model Health Check

What this means: This monitors how accurate our AI predictions have been recently. Think of it like a report card for the model. If accuracy drops, we may need to retrain it with newer data. This helps ensure you're getting reliable forecasts.

Rolling MAE
$3,285

3.9% of price

Mean Clamp Rate
17.9%
Return Clamp Rate
8.7%
Retrain Signal
Monitoring (post-retrain)
Drivers
  • Mean clamp rate 17.9% > 15%

Post-retrain monitoring is expected during the same retrain run when drift signals remain elevated. Re-check on the next run before retraining again.

High clamp rates detected: Mean clamp rate 17.9% > 15%

Monte Carlo Price Projection (Fan Chart)

What you're seeing: This shows 1,000 possible price scenarios for the next 180 days based on Bitcoin's historical behavior. The dark blue center line is the most likely outcome (median). The shaded areas show the range where the price could reasonably land:
Darker blue area: 50% chance price will be in this range (25th-75th percentile)
Lighter blue area: 90% chance price will be in this range (5th-95th percentile)

This is like a weather forecast - it shows a range of possibilities, not a single prediction.

Remember: These are probabilities, not certainties. Use this to set realistic expectations and plan for multiple outcomes.

Prophet Forecast

What you're seeing: This is a time-series forecast model (developed by Meta/Facebook) that identifies patterns and trends in Bitcoin's price history. The darker line shows the expected path, while the shaded area shows the uncertainty range. This model is best for understanding general trends rather than precise price targets.

AI Neural Network Predictions

What you're seeing: This uses artificial intelligence (specifically, an LSTM neural network) trained on Bitcoin's price patterns and network data. The AI learns from history to predict short-term price movements. The shaded area represents the confidence range - wider bands mean more uncertainty. This works best for near-term predictions (days to weeks) rather than long-term forecasts.

Mode: Forecast mode is hybrid: 7-day uses autoregressive simulation paths; longer horizons use direct horizon head.

Note: Holdout intervals are over-conservative (very high coverage with wide ranges) for 90d, 120d, 150d, 180d. Treat these horizons as scenario planning only, not precise targets.

Combined Forecast (Best of All Models)

What you're seeing: Instead of relying on just one prediction method, this combines multiple models (AI, statistical, and simple baselines) weighted by their recent accuracy. It's like getting a second opinion from several doctors and averaging their diagnoses based on their track records. The current market regime (Downtrend (Medium Volatility)) influences which models get more weight.

Orange line: The combined prediction · Dashed lines: Individual model predictions for comparison

Note: The dashed LSTM Daily Path (component) is the day-by-day simulation path used in blending; it may differ from the decision-horizon medians shown in the LSTM card.

Key Drivers
  • NAIVE leads the blend based on recent accuracy.
  • LSTM provides secondary signal support.
  • NAIVE shows the lowest 7d MAE in backtests.
NAIVE
83.3%

Ensemble share

PROPHET
1.9%

Ensemble share

LSTM
14.8%

Ensemble share

Ensemble Horizon Targets
7d
$69,933
30d
$70,156
90d
$72,003
180d
$72,597
Model Report Card

What this means: This shows how accurate each prediction model has been in recent history by testing them on real past data (36 tests from 2024-12-12 to 2025-08-14). Lower error numbers mean better accuracy.

How to read this table:
MAE/RMSE: Average dollar error - lower is better (shows typical prediction accuracy)
MAPE: Error as a percentage of price - lower is better
PICP 95%: How often actual price fell within prediction range - closer to 95% is better
Width %: How wide the prediction range is relative to price - narrower is more precise

Model Horizon Obs MAE RMSE MAPE PICP 95% Width %
NAIVE 7d 36 $3,711 $4,839 3.7% N/A N/A
NAIVE 30d 36 $7,603 $9,318 7.6% N/A N/A
NAIVE 90d 36 $13,931 $16,130 13.4% N/A N/A
NAIVE 180d 36 $21,172 $23,530 21.5% N/A N/A
LOG_GROWTH 7d 36 $20,115 $21,836 19.4% N/A N/A
LOG_GROWTH 30d 36 $19,410 $21,089 18.5% N/A N/A
LOG_GROWTH 90d 36 $18,447 $20,221 17.0% N/A N/A
LOG_GROWTH 180d 36 $20,935 $22,606 20.3% N/A N/A
PROPHET 7d 36 $13,423 $17,790 14.5% 58.3% 26.2%
PROPHET 30d 36 $17,655 $24,865 19.4% 58.3% 30.2%
PROPHET 90d 36 $24,524 $32,323 26.0% 63.9% 73.0%
PROPHET 180d 36 $30,585 $36,365 32.6% 97.2% 289.6%
AI Model Performance (Current Version)

What this means: This tests our current AI model on recent data to see how well it performs without being retrained. This tells you how reliable the AI predictions are right now with the model version we're using today.

Origins: 26 · Stride: 7 · Paths/origin: 500 · 2025-02-21 → 2025-08-15

Method: Direct horizon head (frozen walk-forward)

Model Horizon Obs MAE RMSE MAPE PICP 95% Width % CRPS
LSTM (FROZEN DIRECT) 7d 26 $4,511 $5,350 4.7% 96.2% 29.8% $3,180
LSTM (FROZEN DIRECT) 30d 26 $7,301 $9,176 7.1% 92.3% 38.7% $6,179
LSTM (FROZEN DIRECT) 90d 26 $11,630 $14,119 10.5% 100.0% 89.1% $10,041
LSTM (FROZEN DIRECT) 180d 26 $29,844 $34,363 33.1% 100.0% 262.2% $22,425
AI Prediction Range Accuracy

What this means: This checks whether our AI's confidence ranges are properly calibrated. When the AI says "95% confident the price will be in this range," this verifies that the price actually falls in that range 95% of the time. Well-calibrated ranges help you trust the uncertainty estimates.

Calibrated vs Raw: Calibrated coverage is after interval scaling (targeting 95%). Raw coverage shows pre-calibration behavior.

Origins: 80 · Stride: 5 · Paths/origin: 1000

Model Horizon Obs MAE (med) PICP 95% (Cal) PICP 95% (Raw) Width % CRPS
LSTM 7d 80 $2,235 95.0% 83.8% 22.5% $1,693
LSTM 30d 80 $3,953 95.0% 90.0% 49.0% $2,806
LSTM 90d 80 $9,092 95.0% 83.8% 86.5% $6,619
LSTM 180d 80 $17,406 95.0% 71.2% 120.4% $13,503
📊 Key Takeaways & Action Items

What this means: Here's what all the data above tells us in plain English. These are the most important things to know right now for making investment decisions. Read these carefully - they're written specifically to help you understand what to do next.

⚠️ IMPORTANT: Please Read This ⚠️

This Report is Educational Only - Not Financial Advice

This analysis is provided for learning and research purposes. We are not financial advisors, and nothing in this report should be considered a recommendation to buy or sell Bitcoin.

What you should know:

  • Past performance does not guarantee future results. Bitcoin has been volatile and may continue to be.
  • You could lose money. Only invest what you can afford to lose completely.
  • Do your own research. This report is just one tool - combine it with your own analysis and judgment.
  • Consult a professional. Talk to a licensed financial advisor before making investment decisions.
  • Models can be wrong. All predictions are based on historical patterns and may not reflect future reality.

By using this report, you acknowledge that you understand these risks and that all investment decisions are your sole responsibility.