Don't ask again if you can buy 5 major bitcoin indicators to let you buy bottom

What are Bitcoin Indicators?

Bitcoin indicator is a trading tool for predicting the trend of Bitcoin by tracking different data performance to build models. Common tracking targets include trading volume, exchange inflow and outflow, market overbought and oversold performance, miners’ coin sales, community popularity, etc.

Different indicators have different data bases and analysis models, but almost all indicators are used to help judge one thing: whether it is suitable to buy or sell now.

Users can choose which indicator to use according to their own funds, trading strategies and investment expectations, or refer to different indicators in multiple ways to grasp a more accurate trend.

Ahr999 Index: Value Investing Currency Index

Ahr999 Current value: 0.44

Ahr999 was established by Jiushen, a senior bitcoin believer, and is the product of two numbers. One is the 200-day fixed investment average price cost (geometric mean) of Bitcoin, and the other is the Bitcoin index growth valuation. And based on the historical records of Bitcoin prices since 2010, the logarithmic function is used to calculate, and the range suitable for fixed investment and bottom-hunting of Bitcoin is estimated.

How to carry out asset allocation according to Ahr999 indicators

・When the index is higher than 1.2, it means that the price of Bitcoin is rising in a bull market. At this time, the entry pressure is high and there is a high chance of getting stuck.

・When the index is between 0.45 and 1.2, it means that the average investment cost of Bitcoin is in a reasonable range, and it is suitable to consider regular investment.

**・When the index is lower than 0.45, it means that the price of Bitcoin is undervalued, which is a relatively high-certain bottom-building range, suitable for consideration of bottom-buying. **

Ahr999 Live Charts

2-Year MA Multiplier (2-Year MA Multiplier): A tool for hunting bottoms and escaping tops

The current value of the two-year MA multiplier: 2YMA: 32,172, 2YMA x5: 160,864

The two-year MA multiplier was established by Philip Swift, the founder of Look in to Bitcoin. It judges whether it is suitable to buy or sell by evaluating whether the market is in a period of excessive excitement that leads to excessive price increases, or excessive pessimism that causes prices to fall excessively. Use moving average (MA), and 2-year MA x5 as trend model.

How to do asset allocation based on the two-year MA multiplier indicator

**・When the price falls below the 2-year moving average (green line), the risk of buying Bitcoin is low, and it is more likely to bring positive returns. It is suitable to consider buying bottoms. **

・When the price is higher than the 2-year moving average x 5 (red line), the risk of holding Bitcoin is high, which is a signal to escape from the top and it is suitable to consider selling.

2-Year MA Multiplier indicator instant chart

Relative Strength Index (RSI): overbought and oversold interpretation indicator

RSI current value: 47.59

RSI is an indicator to measure the speed and magnitude of Bitcoin price changes. The RSI score is calculated based on the performance of the first 12 months of the observed month to determine whether the market is strong or weak, whether it is in the overbought or oversold range. The stronger the strength of the rise, the closer the RSI will be to 100, and a high RSI also indicates that the price movement has been more positive in the past 12 months; on the contrary, the stronger the strength of the decline, the closer the RSI will be to 0, and a low RSI value means that the price The changes are relatively negative.

How to conduct asset allocation based on RSI indicators

・An RSI value of 70 or above (closer to green) indicates that Bitcoin is overbought and may face a decline soon, and it is suitable to consider selling.

**・An RSI value of 30 or below (the closer to red) indicates that Bitcoin is oversold, or may soon be oversold. It is suitable to consider bargain hunting. **

RSI indicator instant chart

Net Unrealized Profit/Loss (NUPL): market panic and greed indicator

NUPL current value: 21.9%

The NUPL indicator (Net Unrealized Profit/Loss) is an indicator used to track the sentiment performance of the Bitcoin market. It uses market value, realized value, and unrealized profit and loss as benchmarks to judge the profit and loss performance of the entire Bitcoin market. The NUPL indicator takes 0 as the reference point, and if it is greater than 0, it means that the overall market is making a profit, otherwise it is in a state of loss.

When NUPL is in the range below 0 to -150%, it means that the market is in a state of relative fear; and when NUPL is greater than 50% or above, it shows that the market is in a state of relative greed.

How to perform asset allocation based on NUPL indicators

・When the NUPL value is 75 or enters the red range, it means that the market is overheated and it is suitable to consider selling.

**・When the NUPL value is 0 or below, it means that the market is in a loss-making and cold state, and it is suitable to consider buying bottoms. **

NUPL indicator instant chart

Market value realization indicator (MVRV Z-Score): Bitcoin fair price indicator

MVRV Z-Score current value: 0.41

MVRV-Z Score was established by Murad Makhmudov and David Puell. It is an indicator used to calculate the "fair price" of cryptocurrency, which is a reasonable price at this stage. It uses the market value (Market Value, MV) and realized market value (Realized Value) , RV) as a benchmark, subtracting Bitcoin’s realized value from market cap to calculate whether Bitcoin’s current price is overvalued or undervalued has historically been very effective in identifying intervals where market value is abnormally higher than realized value.

How to perform asset allocation based on the MVRV Z-Score indicator

・When the MVRV-Z Score value exceeds 6.9 (entering the red zone), it means that the price of Bitcoin is overvalued, and it may be close to the peak and will face the risk of falling. It is suitable to consider selling.

**・When the MVRV-Z Score value is lower than 0 (entering the green range), it means that the price of Bitcoin is undervalued, and it is suitable to consider bargain hunting. **

MVRV Z-Score indicator real-time chart

Conclusion:

It should be noted that most trend indicators track and predict long-term performance. For those who trade frequently and like to do short-term or arbitrage, they may only be suitable for reference to some information. The most important thing is to realize that these analysis models made based on historical data performance can only be used as a reference in the end, and cannot predict the future 100%.

Of course, with some data and trend basis, the winning rate is definitely higher than purely relying on feeling trading. The next time you encounter market fluctuations, if you want to know whether you can still buy, or whether it is a good time to jump off the car, first look at these indicators The performance is just right!

Remember, at all times, you are expected to do your own research.