【BTC On-Chain Indicator Update】The current indicator in the chart has fallen to 2.75

The current indicator in the chart has dropped to 3.16

In 2014, this indicator fell from 3.16 to 1, taking 285 days
In 2018, this indicator dropped from 3.16 to 1, taking 274 days
In 2022, this indicator fell from 3.16 to 1, taking 296 days

The upper indicator in the chart represents the BTC price;
The middle indicator in the chart represents the realized profit of Bitcoin (365-day MA) and the realized loss of Bitcoin (365-day MA);
The lower indicator in the chart is the ratio of the realized profit of Bitcoin (365-day MA) to the realized loss of Bitcoin (365-day MA), also known as the 'Realized Profit and Loss Ratio (365-day MA)'

This ratio reflects the overall profit and loss status of market participants by comparing the moving average of the profits realized by investors (the portion where the selling price is higher than the buying price) and the losses (the portion where the selling price is lower than the buying price) over the past 365 days

In a bull market, the profit and loss ratio is usually higher, as investors tend to lock in profits at high prices
In a bear market, this ratio is usually lower, as investors may sell at a loss, reflecting market panic or capitulation behavior

The 365-day moving average smooths out short-term fluctuations and highlights long-term trends. This indicator is suitable for determining whether the market is in a state of overheating (high ratio) or excessive panic (low ratio), making it a powerful tool for assessing market cycles and trends.