Structural Heat Map (V3 + R3 BMSB Deviation)

This indicator measures structural deviations of price from the Weekly Bull Market Support Band (BMSB), adjusted for both micro and macro volatility regimes. It is designed for crypto assets where volatility clustering, leverage cycles, and asymmetric crowding frequently produce blow-off tops and liquidation cascades.

The Weekly BMSB acts as a macro “fair value” baseline, while daily deviations reveal short-term extensions in both bullish and bearish conditions. A hybrid volatility normalization (Daily ATR vs Weekly ATR regime) converts deviations into a continuous 0–100 “structural heat” scale:

0–20: neutral / within structural equilibrium

20–40: early extension

40–60: crowded / extended

60–80: stressed / high-risk

80–100: extreme blow-off or capitulation conditions

Extreme readings highlight periods of structural distortion, not trend reversal signals. These events often coincide with leverage expansions, sentiment extremes, funding dislocations, and cycle peaks or washouts.

Use-case: informational context for crypto cycle analysis, risk awareness, regime characterization, and macro/micro structural comparison. This is not a buy/sell indicator and should not be interpreted as such.