Updated: Oct 10, 2021
Upon observing numerous Charts with the Market Zones Indicator applied it reveals some key features of Price behavior in Charts:
There is something that can be called a "Fair Value" a purely Technical Analysis concept constitutes the "Middle Zone" in the Market Zones Indicator in particular the middle line
Prices may move around the Middle Line/Zone reaching Extreme Zones sometimes may penetrate past it especially when the Zones are compressed ("narrow distance between the lines"); sometimes prices may never reach Extreme at the most Upper before reversing to Middle "Fair Value"
The Middle Zone acts like "gravity" attracting back any excursions into Extreme Zones
All Zones and Lines including the Middle Line in the Market Zone Indicator continuously evolve based on Price Action and the underlying algorithm
Applying Market Zones to multiple time-frames provides insights, and as time passes there is enough raw price history available for Bitcoin to able to start seeing meaningful Market Zones. This is something important that Market Zones requires some significant history cannot be applied to brand new or very illiquid instruments Charts.
Consider Figure 1 below is the Bitcoin 120 Minute Tradestation Bitcoin Futures Chart with Market Zones Applied. It shows in recent months Bitcoin has traveled from Extreme Upper Zone area and rather gradually pulled back to the Middle Zone "Fair Value" region - 30K-40K area Currently it is trending up towards the 55K - 70K Upper Zone Interesting that the Extreme Upper Zone could reach 150K and the Extreme Lower is showing up as Negative values! As such based on this Chart seems reasonable to be Bullish Bitcoin with a Stop Loss perhaps a bit below the Middle Line (25K say) and could reach 100K+ potentially.
Incorporating Figure 2 below is the Bitcoin Futures 520 Minute Tradestation Chart, observe the Price is back in the Extreme Zone! In the previous downward move it never breached below the Upper Zone, never reached the Middle Zone. Instead it has returned to the Extreme Zone with very widely dispersed, non-compressed Lines and Zones - all the Lines are farther apart here. It very much opens the possibility that after reaching perhaps the 60-70K area or anytime really it would start coming back down to the Middle Zone - especially in the cards because it failed to reach there in the previous thrust downward - this is due to Principle 3 above there is almost a "gravity" like reversion effect it "needs" to return cross under even if not by much below the Middle Line. So the future movement possibility of a return to the 20K zone is hand-drawn into Figure 2
Analyzing both Figure 1 and Figure 2 together is strongly suggestive to be cautious anywhere above 55K because the "pull" back to the Middle Zone has not transpired as of yet in the higher time-frame 520 Minute Chart. The Lower Time Frame 120 Minute nothing says it must travel to the Extreme 100K+ Zone either there, it could very well come down without even reaching the Upper Zone 70K let alone the 100K+ Extreme Zone
But these are Financial Markets anything is possible indeed but the deck seems to indicate reversion to the 520 Minute "Fair Value" area as of now 20K range - when exactly would it reach Middle Zone is hard to predict precisely but seems in the cards it may be gradual, it could be sudden the point is some sort of return to the Middle Zone is built into the Market dynamics at least according to the Market Zones Indicator! And when it does Middle Line may not be exactly 20K either, it could be a bit more like 30K it is not so much the value of the Line but that Price must move, cross a bit under the Line even if the Line has been "pulled" up a bit over time. With Market Zones better to think in terms of "next set of major movements" it is less precise about when exactly. Nonetheless even for Options it could be useful to know next set of Moves for Bitcoin is a reversion to Middle Zone even if slow or fast.
Aside from using the Market Zones Lines for creating Trading Plans like moving average crossovers can be entries or exits, there is the Deep Trendlines Indicator can be used in conjunction with the Market Zones for very versatile trading plans across the various day, swing, intermediate, long term styles. For more on these Indicators visit Deep Trendlines Site.
Figure 1 : 120 Minute BTC Chart
Figure 2: 520 Minute BTC Chart