Attention: Glassnode Declares Bitcoin Market Has Entered the “Very High Risk” Area! Here are 9 Metrics and Details

Crypto money analytics company Glassnode recently Bitcoin He declared that the risk situation in the market is “high”.

The company provided a status update on its Bitcoin Risk Assessment Framework, a tool for investors to measure market sentiment and underlying risk.

MVRV Model and Mayer Multiple

The indicator the company uses tracks Bitcoin price deviation from two long-term mean reversion bases: MVRV Model and Mayer Multiple. The MVRV Model measures the ratio between the spot price and the market’s overall cost base (Actual Price).

Mayer Multiple uses the 200-day simple moving average as a technical cyclical median line, measuring the premium or discount relative to this baseline.

According to Glassnode, over the past 12 days this indicator has been very high, with the price being above both patterns (MVRV > 1 and MM >1) and trading two standard deviations higher than the cumulative average of the Mayer Multiple (MM > +2 STD). pointed out a risk.

Percentage of Supply at Profit (PSIP)

The Percentage of Supply at Profit (PSIP) metric measures the proportion of coins purchased at less than the current spot price on a cost basis. This indicator can help identify the potential risk of increased selling pressure as investors see an increased incentive to take profits.

This metric, currently traded at 99.3%, is at a very high risk stage according to analysts. This level first appeared 94 days ago in this cycle.

Net Unrealized Profit/Loss (NUPL)

Net Unrealized Profit/Loss (NUPL) indicates whether market sentiment is towards Fear or Greed. With its current value of 0.64, this indicator lies above the +1 standard (~0.59) band and, according to analysts, indicates a very high-risk phase of the market known as euphoria.

Realized Profit/Loss (RPLR)

According to Glassnode, the Realized Profit/Loss (RPLR) metric stands at 41.7, significantly above the very high risk level of 9, indicating that over 97% of BTC is trading in profit, indicating potential market demand exhaustion.

Generally, a significant jump in this indicator to the very high risk range indicates an increased risk of local peaks, according to analysts. In previous cycles, this type of structure had persisted for 137-312 days after rising above the last record. The current similar phase started 77 days ago.

Long Term Wallets MVRV (LTH-MVRV)

Long-Term Wallets MVRV (LTH-MVRV), that is, the ratio between the price and the cost base of long-term wallet holders, has recently increased to 3.55, signaling that, according to analysts, long-term wallet holders have moved into a very high-risk phase (LTH-MVRV > 3.5). The recent sharp price rise has led to a significant wave of unrealized profits into the pockets of long-term wallets.

*This is not investment advice.