On-chain Data Academy (3): Have the market makers who accumulated at the bottom taken profits?

This article is the third article in the On-Chain Data Academy series, with a total of 10 articles. Take you step by step to understand on-chain data analysis, welcome interested readers to follow this series of articles. (Synopsis: On-Chain Data Academy (1): Do you know what the average cost of BTC in the whole market is? (Background supplement: On-chain analysis beginner course" fully grasps the basic key indicators of the crypto market, concepts and tools are all here) TLDR This article will introduce the on-chain indicator Realized Profit shows the amount of profit exits in the market every day Huge amounts of Realized Profit are usually only caused by low-cost chip holders The top is usually accompanied by a huge amount of Realized Profit Realized Profit & Realized Loss Introduction Realized Profit, translated as "realized profit" in Chinese, is based on the price of each BTC "at the time of the last transfer" and the price of "at the time of the previous transfer", to calculate how many BTC are profitable per day, and the total profit of these BTC profits can be summed up to get the daily Realized Profit. Of course, if the price at the time of the last 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) Huge amounts of Realized Profit are usually only caused by low-cost chip holders As shown in the figure below: Since high-cost chip holders do not have large profit margins, when they sell, they can generate not much Realized Profit. So, when we see huge amounts of Realized Profit, it usually means that there are low-cost chips dumping BTC. (Realized Profit calculation diagram) The top is usually accompanied by a huge amount of Realized Profit When a large number of low-cost chip holders sell their BTC in their hands, we will see a huge amount of realized profits on the chart. At this time, since the rest of the market are high-cost participants, the market price is closer to their cost price, and once the sentiment changes slightly, it is easier for them to panic and sell, causing the price to fall in a chain and form a top. (The top is usually accompanied by a huge amount of Realized Profit) Conclusion The above is all the content of the on-chain data academy (3), readers who are interested in learning more in-depth on-chain data analysis, remember to follow this series of articles! If you want to see more on-chain data analysis and teaching content, please follow my Twitter (X) account! Hope this article helps you, thanks for reading. Related reports On-chain data: Bitcoin whales begin to re-accumulate BTC, cottage season is not yet arrived but has passed? After three consecutive months of Bitcoin's decline, on-chain data shows that it is about to return to the bull. Everyone is a chain detective, ZachXBT's commonly used 12 tracking tools to sort out [on-chain data school (3): Have the bankers at the bottom made profits? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".