Don’t ask if you can buy it anymore? 5 major Bitcoin indicators allow you to buy at the bottom.
5 key Bitcoin indicators enable bottom buying.
What is Bitcoin Indicator?
Bitcoin Indicator is a trading tool that predicts Bitcoin trends by tracking different data performances and establishing models. Common tracking targets include trading volume, inflow and outflow of exchanges, market overbuying and overselling performance, selling volume of hoarded coins by miners, community popularity, etc.
Different indicators have different data foundations and analysis models, but almost all indicators are used to assist in judging one thing: whether it is suitable to buy or sell now.
Users can choose which indicators to use based on their capital, trading strategy, and investment expectations, or refer to different indicators to grasp a more accurate trend.
Ahr999 Index: Value Investment Hoarding Indicator
Current Value of Ahr999: 0.44
Ahr999 was established by the senior Bitcoin believer Jiushen. It is the product of two numbers. One is the 200-day average cost of Bitcoin’s periodic investment (geometric mean), and the other is the Bitcoin index growth valuation. Based on the historical records of Bitcoin prices since 2010, it is calculated using a logarithmic function and estimates the range of Bitcoin suitable for periodic investment and bottom fishing.
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How to allocate assets based on the Ahr999 indicator
– When the index is above 1.2, it indicates that the Bitcoin price is rising in a bull market. At this time, there is greater pressure to enter the market and a higher chance of getting trapped.
– When the index is between 0.45 and 1.2, it indicates that the average investment cost of Bitcoin is in a reasonable range and is suitable for considering periodic investment.
– When the index is below 0.45, it indicates that the Bitcoin price is undervalued and is a relatively high certainty bottom-fishing range, suitable for considering bottom fishing.
Ahr999 real-time chart
https://coinsoto.com/zh-tw/indexdata/ahrIndex
2-Year MA Multiplier: Market Bottom Fishing and Top Escape Tool
Current Value of 2-Year MA Multiplier: 2YMA: 32,172, 2YMA x5: 160,864
The 2-Year MA Multiplier was established by Philip Swift, the founder of Look into Bitcoin. It judges whether it is suitable to buy or sell by evaluating whether the market is in a period of excessive excitement leading to excessive price increase or excessive pessimism leading to excessive price decrease. It uses moving averages (MA) and 2-year MA x5 as trend models.
How to allocate assets based on the 2-Year MA Multiplier indicator
– When the price falls below the 2-year average line (green line), buying Bitcoin has lower risk and is more likely to bring positive returns, suitable for considering bottom fishing.
– When the price is above 5 times the 2-year average line (red line), holding Bitcoin has higher risk. It is a sell signal for top escape and suitable for considering selling.
2-Year MA Multiplier Instant Chart
https://www.lookintobitcoin.com/charts/bitcoin-investor-tool/
Relative Strength Index (RSI): Overbought and Oversold Indicator
Current RSI Value: 47.59
RSI is an indicator that measures the speed and magnitude of Bitcoin price changes. It is calculated based on the performance of the previous 12 months and is used to determine the strength of the market trend and whether it is in the overbought or oversold zone. The stronger the upward momentum, the closer the RSI is to 100, indicating more positive price changes in the past 12 months. Conversely, the stronger the downward momentum, the closer the RSI is to 0, indicating relatively negative price changes.
How to Allocate Assets Based on RSI Indicator
– RSI value of 70 or above (closer to green) indicates that Bitcoin is overbought and may face a decline soon, suitable for considering selling.
– RSI value of 30 or below (closer to red) indicates that Bitcoin is oversold or may soon be oversold. Suitable for considering bottom fishing.
RSI Indicator Instant Chart
https://charts.bitbo.io/monthly-rsi/
Net Unrealized Profit/Loss (NUPL): Market Fear and Greed Indicator
Current NUPL Value: 21.9%
The Net Unrealized Profit/Loss (NUPL) indicator is used to track the sentiment performance of the Bitcoin market. It uses market value, realized value, and unrealized profit/loss as benchmarks to judge the overall profit/loss performance of the Bitcoin market. The NUPL indicator has 0 as the baseline, with values above 0 indicating a profitable market and values below 0 indicating a loss-making market.
When NUPL is in the range of 0 to -150%, it indicates a relatively fearful market; when NUPL is greater than or equal to 50%, it indicates a relatively greedy market.
How to Allocate Assets Based on NUPL Indicator
– When the NUPL value is 75 or enters the red zone, it indicates that the market is overheated, suitable for considering selling.
– When the NUPL value is 0 or below, it indicates that the market is in a loss-making and cold state, suitable for considering bottom fishing.
NUPL Indicator Instant Chart
https://www.lookintobitcoin.com/charts/relative-unrealized-profit–loss/
Market Value Realized Value (MVRV Z-Score): Bitcoin Fair Value Indicator
Current MVRV Z-Score Value: 0.41
The MVRV-Z Score, established by Murad Makhmudov and David Puell, is an indicator used to calculate the “fair value” of cryptocurrencies, which is the current reasonable price. It uses the market value (MV) and the realized value (RV) as benchmarks, subtracts the realized value of Bitcoin from the market value, and calculates whether the current price of Bitcoin is overvalued or undervalued. It has been highly effective in identifying intervals where market value is abnormally higher than realized value.
How to allocate assets based on MVRV Z-Score indicator
– When the MVRV-Z Score exceeds 6.9 (entering the red zone), it indicates that the price of Bitcoin is overvalued, and it may be close to the top and facing the risk of a decline. It is suitable to consider selling.
– When the MVRV-Z Score is below 0 (entering the green zone), it indicates that the price of Bitcoin is undervalued, and it is suitable to consider buying at a low price.
MVRV Z-Score indicator real-time chart
https://www.lookintobitcoin.com/charts/mvrv-zscore/
Conclusion:
It should be noted that most trend indicators track and predict long-term performance. For those who trade frequently, prefer short-term trading or arbitrage, these indicators may only be suitable for reference. The most important thing is to recognize that these analysis models based on historical data performance can only be used as reference and cannot predict the future with 100% certainty.
Of course, with some data and trend-based evidence, your trading success rate will be higher than relying solely on intuition. Next time you encounter market fluctuations and want to know whether you can still buy or whether it is a good time to exit, just take a look at the performance of these indicators!
Remember, always do your own research.
