The "Large Holder Position Profit and Loss Indicator" (Entity-Adjusted LTH-NUPL) mentioned in the recent analysis of ETH is actually more effective for Bitcoin, with a historical accuracy rate of 100%.
But why mention it only at the end? Because I'm worried that even in an economic recession, Bitcoin may not drop into the red buy zone of this indicator.
If the red zone really appears, this will be my most trusted buying signal.
As long as we enter the red zone, we start buying in batches, buying more the lower it goes. Apart from this indicator, other data cannot guarantee buying at the right position.
However, three points must be noted:
1. No matter how accurate the indicator, it cannot guarantee buying at the lowest point.
2. If a recession triggers a crash, we must buy slowly and in batches.
3. We cannot just look at the data; we also need to consider the broader environment, such as Federal Reserve policies, for judgment.
