The indicator in the current chart has dropped to 3.16

In 2014, this indicator fell from 3.16 to 1, taking 285 days

In 2018, this indicator fell from 3.16 to 1, taking 274 days

In 2022, this indicator fell from 3.16 to 1, taking 296 days

The upper indicator in the chart represents the #BTC price;

The middle indicator in the chart represents the realized profits of Bitcoin (365-day MA) and the realized losses of Bitcoin (365-day MA);

The lower indicator in the chart represents the ratio of realized profits of Bitcoin (365-day MA) to realized losses of Bitcoin (365-day MA), also known as the "Realized Profit and Loss Ratio (365-day MA)"

This ratio reflects the overall profit and loss state of market participants by comparing the moving average of profits (the portion where the selling price is higher than the buying price) and losses (the portion where the selling price is lower than the buying price) over the past 365 days

In a bull market, the profit-loss ratio is usually higher because investors tend to take profits at high prices

In a bear market, this ratio is usually lower because investors may sell at a loss, reflecting market panic or capitulation behavior

Using the 365-day moving average smooths out short-term fluctuations, highlighting long-term trends. This indicator is suitable for determining whether the market is in a state of overheating (high ratio) or excessive panic (low ratio), and is a powerful tool for assessing market cycles and trends.