Meaning of the chart

1. The blue line:

Is the total market value of cryptocurrencies

2. The colors (the colored bar under the line)

Represent the level of short-term bubble risk.

The more red the color is

= the market is in a state of extreme speculation and exaggeration.

The more blue or below zero the color is

= the market is in a state of calm or even a buying opportunity.

How to read the indicator

Current value = 0.854 (noted above as Bearish)

It means the indicator is close to the danger level or "overvalued" (but has not reached the extreme levels of the red bubble).

Each time the indicator reached above 1 (dark red), strong corrections in the market followed.

And if the indicator drops below zero (dark blue), it often indicated excellent buying opportunities.

In short:

The market now has momentum and speculation, but it has not yet entered a full red bubble.

The indicator gives you a signal to be cautious of the possibility of a nearby correction if the market continues to rise without pause.