This article is the 3rd in the series of on-chain data school articles, with a total of 10 articles. It will guide you step by step to understand on-chain data analysis. Interested readers are welcome to follow this series of articles.
Related Reading "On-Chain Data Academy (II): The Hodlers Who Keep Making Money, What Is Their Cost of Buying BTC?"
TLDR
This article will introduce the on-chain metric Realized Profit.
Realized Profit displays the volume of daily profits taken from the market.
A massive Realized Profit is usually only caused by holders of low-cost tokens.
The top is usually accompanied by a massive amount of Realized Profit
Realized Profit & Realized Loss Introduction
Realized Profit, translated as "已实现利润", is calculated based on the price at the last transfer of each BTC and the price at the previous transfer, determining how much BTC is realized for profit each day. By summing up the total profit from these BTC realizations, one can obtain the daily Realized Profit.
Of course, if the price at the time of the final transfer is lower than the price at the time of the previous transfer, it will be counted as Realized Loss.
Realized Profit & Realized Loss Chart
Massive Realized Profit is usually caused only by holders of low-cost chips.
As shown in the figure below: Due to high-cost chip holders, their profit margin is not large, so when they sell, the **Realized Profit** generated is not much.
So, when we see a huge amount of Realized Profit, it usually means that low-cost tokens are selling BTC.
Realized Profit Calculation Diagram
The top is usually accompanied by a large amount of Realized Profit
When a large number of low-cost chip holders sell their BTC, we will see a concentrated large amount of realized profits on the chart.
At this time, since the remaining participants in the market are all high-cost holders, the market price is relatively close to their cost price. Once there is a slight change in sentiment, it is easier for them to panic sell, causing a chain drop in prices and forming a peak.
The top is usually accompanied by massive Realized Profit
Conclusion
This is the entire content of On-Chain Data Academy (III). Readers interested in delving deeper into on-chain data analysis, be sure to follow this series of articles!
If you want to see more analysis and educational content about on-chain data, feel free to follow my Twitter (X) account!
I hope this article is helpful to you, thank you for reading.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
On-chain Data Academy (3): Have the market makers who accumulated at the bottom realized their profits?
This article is the 3rd in the series of on-chain data school articles, with a total of 10 articles. It will guide you step by step to understand on-chain data analysis. Interested readers are welcome to follow this series of articles.
Related Reading "On-Chain Data Academy (II): The Hodlers Who Keep Making Money, What Is Their Cost of Buying BTC?"
TLDR
This article will introduce the on-chain metric Realized Profit.
Realized Profit displays the volume of daily profits taken from the market.
A massive Realized Profit is usually only caused by holders of low-cost tokens.
The top is usually accompanied by a massive amount of Realized Profit
Realized Profit & Realized Loss Introduction
Realized Profit, translated as "已实现利润", is calculated based on the price at the last transfer of each BTC and the price at the previous transfer, determining how much BTC is realized for profit each day. By summing up the total profit from these BTC realizations, one can obtain the daily Realized Profit.
Of course, if the price at the time of the final transfer is lower than the price at the time of the previous transfer, it will be counted as Realized Loss.
Massive Realized Profit is usually caused only by holders of low-cost chips.
As shown in the figure below: Due to high-cost chip holders, their profit margin is not large, so when they sell, the **Realized Profit** generated is not much.
So, when we see a huge amount of Realized Profit, it usually means that low-cost tokens are selling BTC.
The top is usually accompanied by a large amount of Realized Profit
When a large number of low-cost chip holders sell their BTC, we will see a concentrated large amount of realized profits on the chart.
At this time, since the remaining participants in the market are all high-cost holders, the market price is relatively close to their cost price. Once there is a slight change in sentiment, it is easier for them to panic sell, causing a chain drop in prices and forming a peak.
Conclusion
This is the entire content of On-Chain Data Academy (III). Readers interested in delving deeper into on-chain data analysis, be sure to follow this series of articles!
If you want to see more analysis and educational content about on-chain data, feel free to follow my Twitter (X) account!
I hope this article is helpful to you, thank you for reading.
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