Introducing: Market Entropy.
• Entropy = disorder or randomness.
• High entropy = chaotic swings, unpredictable moves
• Low entropy = calm, orderly/trending markets
In BTC, entropy explains when chaos reigns — and when order returns.
• Technically: this indicator bins log returns, then applies rolling Shannon entropy to measure market disorder.
• Practically: it tells you how “random” BTC’s price is at any moment.
The fascinating part is that BTC’s highest entropy spikes have preceded the biggest rallies.
Chaos often comes before opportunity.
Markets want order, when entropy peaks, trends usually follow.
