【Bull Market Series】Don't panic, 76,000 is just another pullback to the "Bull-Bear Demarcation Line" 😏

BTC: Realized Profit/Loss Ratio is an on-chain analysis metric used to measure the relative proportion of profits and losses realized by Bitcoin holders through selling Bitcoin over a certain period.

Definition and Calculation

Realized Profit: When Bitcoin is sold, if the selling price is higher than the price at the last movement (i.e., the price at which the holder bought or acquired it), the difference is the realized profit. Realized Loss: Conversely, if the selling price is lower than the last movement price, the difference is the realized loss. Realized Profit/Loss Ratio = Total Realized Profit / Total Realized Loss.

This ratio is usually expressed in numerical form: If the ratio > 1, it indicates that realized profits on the market exceed losses, reflecting that holders are generally taking profits. If the ratio < 1, it indicates that losses exceed profits, suggesting that holders may be panic selling or cutting losses. If the ratio = 1, profits and losses are roughly balanced, i.e., the "Bull-Bear Demarcation Line"

During a bull market cycle, the "Bull-Bear Demarcation Line" often serves as strong support.