BTC -50% Crash to Recovery Zone

General Overview This is a macro-analysis tool designed to visualize the true duration of Bitcoin’s "Suffering & Recovery Cycles." Unlike standard oscillators that only signal oversold conditions, this script highlights the entire timeline required for the market to flush out leverage and return to All-Time Highs (ATH).

Operational Logic The algorithm tracks Bitcoin’s historical All-Time High (ATH).

The Trigger: It activates automatically when the price drops 50% below the last recorded ATH.

The "Recovery Zone": Once triggered, the chart background turns red (indicating a "Drawdown" state). This zone remains active persistently, even during intermediate relief rallies.

The Reset: The zone deactivates only when the price breaks above the previous ATH, marking the official start of a new Price Discovery phase.

How to Read It

Red Background: We are officially in a Bear Market or Recovery Phase. The asset is technically "underwater." For the long-term investor with a low time preference, this visually defines the accumulation window.

Red Horizontal Line: Indicates the "Target." This is the exact price level of the old ATH that Bitcoin must reclaim to close the bearish cycle.

No Background Color: We are in Price Discovery. The market is healthy and pushing for new highs.

The Financial Lesson This indicator visually demonstrates a fundamental market truth: "Price takes the elevator down, but takes the stairs up." It shows that after a halving of value (-50%), Bitcoin may take months or years to recover previous levels, helping investors filter out the noise of short-term pumps that fail to break the macro-bearish structure.