Universal indicators, applicable to all crypto assets

The first indicator introduced, MVRV Z-Score, is one that I really like because it clearly indicates the current buying and selling conditions of tokens. The calculation method is MV (Market Value) divided by RV (Realized Value). MV is the market capitalization, calculated as the current token circulation * price. RV is the realized value, captured through on-chain data by summing the price of each traded token.

How to interpret the indicator (taking BTC as an example due to differences in token standards)

  • Below 1: Most investors are in a loss state, and the chance of an increase is high.

  • Between 1 ~ 2: Small profit stage; whether to invest can be controlled based on strategy.

  • Between 2 ~ 4: FOMO stage; market heat is rising, must pay attention to holding time if entering.

  • Above 4: Higher risk; may face large profit-taking leading to a price drop.

Current BTC MVRV Z Indicator: 1.6
This indicator can be applied to any token with on-chain data. For example, in BTC, the MVRV Z index usually does not exceed 10, and its volatility has also decreased year by year. Therefore, achieving 4 or 5 is already quite high. However, the same indicator could reach numbers above 10 in altcoins, so while we understand the indicator, we must apply it flexibly.

Fear and Greed Index
Crypto market sentiment indicator, can quickly reflect market direction.
This index is even more familiar to everyone. As an indicator of market sentiment, the Fear and Greed Index consists of multiple factors, including market volatility, market momentum, trading volume, social media sentiment, etc. It is a very intuitive indicator that usually shows market sentiment almost immediately.
How to interpret the indicator:

  • 0 ~ 40 Fear: The market is relatively quiet, asset prices are collapsing, there may be good entry opportunities.

  • 40 ~ 60 Neutral: In a normal trading phase.

  • 60 ~ 100 Greed: FOMO sentiment is high, asset prices are skyrocketing, must be careful of a bubble burst.

Current Fear and Greed Index: 45

Although the Fear and Greed Index is well-known, if you look closely, you'll find that this indicator is very sensitive and can identify short-term market sentiment. Other indicators correspond to longer time cycles, so for short-term traders, the Fear and Greed Index is one of the very useful tools.

How to interpret the indicator:

  • Below 30: Oversold zone, relatively low risk, can consider entering.

  • Above 70: Overbought zone, relatively high risk, with the possibility of inflated prices and the tail end of speculation.


Current 14-day RSI Indicator (BTC Binance): 52
The RSI indicator is usually not used alone; in technical analysis, it is often assessed alongside indicators like MA and MACD for entry and exit points. It can be seen that the recent drops in June and August indeed brought the RSI indicator below 30, entering the oversold zone, which is also when the market is the most fearful.

Ahr999 Index (ahr999 index)
Suitable for long-term investors, dollar-cost averaging strategy.
This index is familiar to everyone; it is a key index for holding Bitcoin. It estimates the average dollar-cost pricing standard over a medium to long term, and because this indicator has been in use for many years with good results, it has remained one of the standards in the crypto market. The calculation method is as follows.
Ahr999 = (Bitcoin price / 200-day dollar-cost average) * (Bitcoin price / index growth valuation)
How to interpret the indicator:

  • Below 0.45: Bottom-fishing moment, low risk.

  • Between 0.45 ~ 1.2: Suitable for dollar-cost averaging strategy to spread risk.

  • Above 1.2: Not suitable for continuous buying, need to pay attention to risks.

Summary: Find trading strategies through indicators.

In the crypto market, many times social media, communities, and market noise are very high, which can easily interfere with our trading judgments. However, the biggest difference between the crypto market and other financial markets is that the crypto market has on-chain data, which cannot be falsified. By understanding the indicators formed from on-chain data, we can use data to discern direction rather than be obscured by opinions. Let's encourage each other.

#BTC再创新高 #币安钱包TGE #币安八周年

Continuous attention:$BTC $ETH $BNB