Realized Bitcoin P/L Ratio About to Rise Above 1 – How Will BTC Price Be Impacted?
The 30-Day Simple Moving Average (SMA) of Glassnode’s Bitcoin Realized Profit-Loss Ratio (RPLR) indicator is about to move above one for the first time last April.
That will mean that the Bitcoin market will soon be realizing a greater proportion of profits (denominated in USD) than losses.
According to Glassnode, “this generally signifies that sellers with unrealized losses have been exhausted, and a healthier inflow of demand exists to absorb profit taking”.Historically, a break back above one in the 30-Day SMA of the Realized Profit-Loss Ratio following a prolonged spell below zero (due to a bear market) has coincided with Bitcoin market bottoms.
When the RPLR bottomed in 2015 at 0.23 (and the Bitcoin price was just under $200), Bitcoin then went on to post a near 90x rally in the next just under three years.Similarly, when the RPLR bottomed around 0.2 in 2019 and Bitcoin’s price had fallen to around $3,600, the cryptocurrency then went on to rally around 19x to by the time it hit record highs in late 2021 just under three years later.
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