Dear Bitcoin investors,

Today, we’re excited to unveil a groundbreaking indicator that has the potential to revolutionize your Bitcoin investment strategy: the Profitability to Price Ratio.

This innovative metric quantifies the intricate relationship between profitability and market price, offering invaluable insights into investor sentiment, market dynamics, and investment opportunities.

How it Works:

📈 Short-Term Holders (STH) Profitability to Price Ratio is a derived metric calculated by dividing the STH Profitability by the current market price of Bitcoin. This ratio offers investors a comparative view of the profitability of short-term Bitcoin holders relative to the prevailing market price. It helps assess whether short-term holders are experiencing higher or lower profitability compared to the overall market conditions, aiding investors in gauging sentiment and potential short-term price movements.

A high positive ratio suggests amplified profitability, while a negative ratio signals caution among short-term holders.

📉 Long-Term Holders (LTH) Profitability to Price Ratio is an on-chain metric calculated by dividing the LTH Profitability by the current market price of Bitcoin. This ratio offers investors a comparative view of the profitability of long-term Bitcoin holders relative to the prevailing market price. It helps assess whether long-term holders are experiencing higher or lower profitability compared to the overall market conditions, aiding investors in gauging sentiment and potential long-term price movements. A high positive ratio suggests amplified profitability, indicating resilience and strategic acumen among long-term holders.

A robust positive ratio reflects strategic acumen and resilience, while a negative ratio hints at a potential market bottom, presenting long-term investment opportunities.

Why it Matters?

In essence, the Profitability to Price Ratio offers a quantitative measure of holder profitability vis-à-vis market prices, empowering investors with a powerful tool to navigate the Bitcoin market with confidence.

Best Practices for Utilizing the Ratio:

• Accumulation Opportunity: When the STH Profitability to Price Ratio drops below 0, it could indicate a prime opportunity to accumulate Bitcoin. This suggests potential oversold conditions or undervaluation.

• Bull Market Confirmation: During bull markets, characterized by LTH Profitability exceeding 0.7, it's a strong confirmation of market strength and upward momentum, signaling a green light for confident investment strategies.

• Profit-Taking Consideration: As the LTH Profitability to Price Ratio rises to 0.9, it's crucial to start considering taking profits. This signals potential market tops or overbought conditions.

Incorporating these best practices into your investment approach can help you leverage the insights provided by the Profitability to Price Ratio effectively, enabling you to make informed decisions and navigate the dynamic landscape of the Bitcoin market with confidence.

Don't miss out on this innovative approach to understanding Bitcoin profitability. Stay ahead of the curve with the Profitability to Price Ratio!

Warm regards,
Adam Mourad
CEO, 0nchained