【Give everyone more confidence】
Let’s take a look at the pie’s sell-side risk ratio indicator
This metric evaluates the total profits and losses realized by investors relative to the size of assets (measured by real market capitalization).
How to use this indicator:
If the data is too high, it indicates that investors are selling tokens at a significant profit or loss relative to their cost basis. This situation is often accompanied by high volatility and signals that the market needs to find a new equilibrium.
If the data is too low, it indicates that most tokens are selling close to the break-even point, indicating a state of equilibrium. This situation indicates that the ability to proactively realize profits or losses has been exhausted and is typically associated with low-volatility market environments.
In recent weeks, however, selling activity has decreased significantly, resulting in a significant decline in sell-side risk ratios.
This indicates that most of the profits and losses planned by investors have been realized. Although the current indicator is still slightly above the long-term average, its decline indicates that the market activity is reduced and preparations are being made for a new trend later in the period.
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