【3𝓐𝓾Learn𝓦𝓱𝓪𝓽#1】On-chain data- 𝓝𝓤𝓟𝓛

Aug 13, 2022

An artifact that tells you when to buy and sell bitcoin

I was watching an online course on investing in cryptocurrencies recently, and I saw something interesting and wanted to share it as a note-taking and personal record. Those of you who follow @米高和ThankYou may find the title very familiar, because it is interesting to learn it, I hope there is no offense.

🔷 Is this a god horse thing?

Net Unrealized Profit/Loss (NUPL - Net Unrealized Profit/Loss): Used to see the difference between Unrealized Profit and Unrealized Loss to determine whether the entire network is currently in a state of profit or loss. Greater than zero means that the network is in a state of net profit, otherwise it means that the network is in a state of net loss. Simply put, the smaller is better for buying (red and orange) and the bigger is better for selling (blue and green). Personal feeling is similar to the fear and greed index, the lower the fear, the higher the greed.

As you can see from the figure below, the black line represents the price of Bitcoin, the one with five colors is NUPL, the red part is basically the relative low point in this time period, and the blue part is the relative high point.

🔷 NUPL formula

🔷 What else can you do?

Because Bitcoin can be said to be the market of the currency circle, its rise and fall will drive the entire currency circle. So this icon can be used not only as a reference for Bitcoin, but also as a reference for other coins.