On-chain data shows that Bitcoin investors have ended their net profit-taking spree recently, a potential sign that a price reversal could occur soon. Bitcoin Daily Realized Profit Loss Ratio Has Dipped Below 1 Recently As explained by CryptoQuant author Axel Adler Jr in a new post on X, realized losses have started to exceed profits recently. The on-chain metric of interest here is the “Daily Realized Profit Loss Ratio,” which, as its name suggests, tells us about how the Bitcoin investors’ profits compare against the losses. The metric works by going through the transaction history of each coin sold to see what price it was moved at before this. If this previous selling price for any coin was less than the current spot price, then that particular coin is being moved at a profit. Related Reading: When To Be Bearish On Bitcoin? On-Chain Analyst Answers Similarly, sales of coins of the opposite type lead to loss realization. The indicator adds these profits and losses for the entire market and takes their ratio to produce its value. When t ..
Support the originator by clicking the read the rest link below.
