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Professional investors combine on-chain and market data to create indicators that signal before the change in prices, and they're called an indicator. What would be the most popular indicator in CryptoQuant? Check 3 indicators that have been viewed the most.
An indicator to determine bubble by projecting realized cap
Long-term holders hold Bitcoins long enough until the price meets their expectations and sell them. When selling Bitcoins, the transaction is made to other wallets through OTC deals or crypto exchanges, which can be considered revenue realization. Realized Cap is the sum of all these transactions being made in Bitcoins.
When there is a gap between Realized Cap and Market Cap, the MVRV number will increase, which can also be interpreted as unrealized profit or loss is increasing, and the asset is overly valued. Vice versa, when the MVRV number decreases, which can also be interpreted as unrealized profit or loss is decreasing.
Generally, MVRV above 3.7 is considered overvalued, and below 1 is considered as undervalued.
⏰ Click to set "MVRV Preset Alert when BTC is overvalued" ⏰ Click to set "MVRV Preset Alert when BTC is undervalued"
An indicator to determine the amount of unrealized profit/loss
NUPL uses Realized Cap to show the ratio of Unrealized Profit/Loss. If there is an increase in Unrealized Profit in blockchain, the probability of price drop increases. Vice versa, if there is an increase in Unrealized Loss in blockchain, the probability of price rise increases.
Generally, in the long term, NUPL above 0.75 is considered overvalued, and below 0 is considered undervalued.