🚀 Understanding PSIP: A Key Indicator of Market Sentiment
#PSIP #Bitcoin #MarketSentiment #OnChainMetrics #Profitability #BuyingOpportunities #MarketAnalysis #CryptoTrends #BlockBeats #BTC
According to BlockBeats, the Percent Supply in Profit (PSIP) is a significant on-chain metric that measures the proportion of circulating Bitcoin ($BTC) that is in a profitable state. This indicator is calculated by comparing the last transfer price of each $BTC with its current price. If the current price exceeds the last transfer price, the $BTC is considered to be in profit.
PSIP serves as a guide to market sentiment and has applications in both identifying market tops and bottoms. When the majority of $BTC holdings are at a loss, it often signals a good buying opportunity, as fewer holders are likely to sell at a loss, reducing selling pressure. Conversely, when most holdings are profitable, the market may experience increased selling pressure as holders look to realize gains.
Historically, Bitcoin has shown precise bottoming signals when PSIP falls below 50%, indicating a potential buying opportunity. However, a high PSIP alone does not necessarily indicate a market top, as the maximum value of profitable holdings can reach 100%.
An interesting approach is to observe the correlation between PSIP and price changes, which can provide insights into market dynamics. This concept is further explored in analyses such as 'The Market Pulse – Week 36, 2022.'
For those interested in delving deeper into on-chain data analysis, following this series of articles is recommended. The series aims to provide a comprehensive understanding of on-chain metrics and their implications for market behavior.#PSIP #Bitcoin #MarketSentiment #OnChainMetrics #Profitability #BuyingOpportunities #MarketAnalysis #CryptoTrends #BlockBeats #BTC
🚀 Bitcoin Approaches Fair Value Amid Recent Decline, Analyst Suggests
#Bitcoin #FairValue #MarketValuation #MVRV #BitcoinPrice #MarketCorrection #BullMarket #BearishCycle #BitcoinDownturn #FloatingLoss #SatoshiNakamoto #PSIP #BitcoinAnalysis #BTC
According to Odaily, analyst Murphy has indicated that Bitcoin's recent downturn has brought it close to its fair value of approximately $98,000. This figure is derived from the historical average of the MVRV indicator, representing the central range of market valuation regression. Currently, the gap between Bitcoin's price and the average cost of active chips is minimal, suggesting that market bubbles have nearly dissipated.
Murphy noted that if the market remains rational, value buying should occur within this range. However, if the decline continues, it may enter an irrational phase or a confidence collapse zone. Data shows that the proportion of Bitcoin's profitable supply (PSIP) stands at 72%, which is at the limit range of a bull market correction (70%-75%). Excluding Satoshi Nakamoto and lost BTC, the proportion of chips in floating loss is close to 40%. Additionally, the loss ratio among long-term holders has significantly increased, indicating that the market may have reached a cyclical bottom range. Analysts believe that if this correction is not the limit of a bull market adjustment, it could signal the start of a new bearish cycle.#Bitcoin #FairValue #MarketValuation #MVRV #BitcoinPrice #MarketCorrection #BullMarket #BearishCycle #BitcoinDownturn #FloatingLoss #SatoshiNakamoto #PSIP #BitcoinAnalysis #BTC
🚀 Bitcoin Market Sentiment Analyzed Through PSIP Metrics
#Bitcoin #MarketSentiment #PSIP #CryptoAnalysis #BitcoinPrice #BearishPhase #UnrealizedLoss #BTC #Cryptocurrency #MarketCycles
According to BlockBeats, on-chain data analyst Murphy has highlighted the significance of the Profit Supply Percentage (PSIP) in assessing market sentiment for Bitcoin. The seven-day average of PSIP has fallen below 70%, a level historically associated with the initial downturn from bullish to bearish cycles, often followed by a rebound after extreme sentiment pressure. When PSIP drops below 50%, it typically signals a deep bearish phase, presenting a potentially optimal buying opportunity.
Currently, Bitcoin is priced at $92,000, with UPPD data indicating that 6.7 million BTC are in a state of unrealized loss, accounting for 33% of the total circulation. If low-positioned holders refrain from selling, a price drop to $59,000 would result in 9.744 million BTC becoming trapped, aligning PSIP around 50%. As PSIP is dynamic, its static evaluation offers only an approximate range. Experience suggests that if Bitcoin enters the $60,000 to $70,000 range, PSIP is likely to fall below 50%, marking the onset of a deep bearish phase.#Bitcoin #MarketSentiment #PSIP #CryptoAnalysis #BitcoinPrice #BearishPhase #UnrealizedLoss #BTC #Cryptocurrency #MarketCycles
🚀 Bitcoin's Profit Supply Percentage Indicates Market Sentiment
#Bitcoin #ProfitSupplyPercentage #PSIP #MarketSentiment #BearMarket #InvestmentOpportunity #BitcoinPrice #CryptoAnalysis #BitcoinPrediction #BTC
According to PANews, analyst Murphy has observed that Bitcoin's Profit Supply Percentage (PSIP) fell below the critical 65% threshold on November 22-23, signaling a potentially dangerous market sentiment. The PSIP has since recovered to 67.6%, but it remains within the crucial 65%-70% range. A rise above this range could restore confidence, while a decline might trigger panic.
Historical data suggests that when PSIP falls below 50%, it typically marks the bottom of a bear market. Previous predictions indicated that Bitcoin would need to drop below $59,000 to reach this level, but recent estimates have adjusted this figure to below $62,000. Analysts believe that Bitcoin priced under $62,000 could present a high-value investment opportunity, though patience is advised as market conditions evolve.#Bitcoin #ProfitSupplyPercentage #PSIP #MarketSentiment #BearMarket #InvestmentOpportunity #BitcoinPrice #CryptoAnalysis #BitcoinPrediction #BTC
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