6 min read

On what basis would professional investors invest?

Professional investors combine on-chain and market data to create indicators that signal before the change in prices, and they're called an indicator. 

What would be the most popular indicator in CryptoQuant?

CryptoQuant consolidates all major crypto exchanges and updates core data in real-time.

CryptoQuant offers comprehensive data for crypto trading: market data, on-chain data, short/long-term indicators for Bitcoin, Ethereum, Stablecoins, ERC20 tokens. 

CryptoQuant offers comprehensive data for crypto trading: market data, on-chain data, short/long-term indicators for Bitcoin, Ethereum, Stablecoins, ERC20 tokens.

CryptoQuant:

  • Actionable on-chain data, charts, alerts for investors in BTC, ETH, Stablecoin;
  • Insights
  • Alerts
  • Improved data latency: 10x faster
  • All-in-one trend view of data
  • Customized charts and dashboards
  • 120+ assets, and more data history
  • CQ data guide in multi languages

Check 3 indicators that have been viewed the most:

1. MVRV (Market Value to Realized Value)

  • An indicator to determine bubble by projecting realized cap

 

MVRV (Market Value to Realized Value) An indicator to determine bubble by projecting realized cap

Long-term holders hold Bitcoins long enough until the price meets their expectations and sell them. When selling Bitcoins, the transaction is made to other wallets through OTC deals or crypto exchanges, which can be considered revenue realization. Realized Cap is the sum of all these transactions being made in Bitcoins.

When there is a gap between Realized Cap and Market Cap, the MVRV number will increase, which can also be interpreted as unrealized profit or loss is increasing, and the asset is overly valued. Vice versa, when the MVRV number decreases, which can also be interpreted as unrealized profit or loss is decreasing.

Generally, MVRV above 3.7 is considered overvalued, and below 1 is considered as undervalued.

MVRV (Market Value to Realized Value) An indicator to determine bubble by projecting realized cap
MVRV (Market Value to Realized Value) An indicator to determine bubble by projecting realized cap
MVRV (Market Value to Realized Value) An indicator to determine bubble by projecting realized cap

2. NUPL (Net Unrealized Profit/Loss)

  • An indicator to determine the amount of unrealized profit/loss

NUPL (Net Unrealized Profit/Loss) An indicator to determine the amount of unrealized profit/loss

NUPL uses Realized Cap to show the ratio of Unrealized Profit/Loss. If there is an increase in Unrealized Profit in blockchain, the probability of price drop increases. Vice versa, if there is an increase in Unrealized Loss in blockchain, the probability of price rise increases.

Generally, in the long term, NUPL above 0.75 is considered overvalued, and below 0 is considered undervalued.

NUPL (Net Unrealized Profit/Loss) An indicator to determine the amount of unrealized profit/loss
NUPL (Net Unrealized Profit/Loss) An indicator to determine the amount of unrealized profit/loss
NUPL (Net Unrealized Profit/Loss) An indicator to determine the amount of unrealized profit/loss

CryptoRobotics Trading Platform
CryptoRobotics Trading Platform

3. LTH-SOPR(Long-term Holder Spent Output Profit Ratio)

  • An indicator to capture long-term holder's investment

LTH-SOPR(Long-term Holder Spent Output Profit Ratio) An indicator to capture long-term holder's investment

Bitcoin trading is like using a check. Let's say John needs to give Jane $100. When John gives Jane $100 by using a $1K check, Jane receives a $1K check from John, creates a $900 check and $100 check from a $1K check, and returns a $900 check to John. $1K check will be disposed of. This kind of check system in Bitcoin is called UTXO(Unspent Transaction Output).

LTH-SOPR is an indicator of how much profit/loss is generated from UTXOs that have not been used for over 155 days. If the profit is greater using the UTXO(check), the LTH-SOPR value increases, and vice versa for the loss.

Generally, LTH-SOPR above 13 is considered long-term holders are making a profit, and below 1 is considered long-term holders are making a loss.

LTH-SOPR(Long-term Holder Spent Output Profit Ratio) An indicator to capture long-term holder's investment
LTH-SOPR(Long-term Holder Spent Output Profit Ratio) An indicator to capture long-term holder's investment
LTH-SOPR(Long-term Holder Spent Output Profit Ratio) An indicator to capture long-term holder's investment
NapBots - Are You Ready For The Robot Trading Revolution? Crypto Bot. Our automated trading platform is developed to help you trade with ease and efficiency. Copy trading made simple is our mojo. Start your copy trading now!
Altrady Crypto Trading Software is Fast, Easy & Secure | Trade Bitcoin

Learn more: