🧠A smart way to implement Dollar-Cost Averaging (DCA) and accumulate Bitcoin is by using the True Market Mean Price (TMMP) and the AVIV Ratio.
The True Market Mean Price (TMMP) is a powerful indicator that provides a detailed view of the average acquisition price on the network by investors. It differs from the Realized Price because, while the Realized Price considers all coins on the network, the TMMP excludes miners' profit realizations, making it a more realistic metric for the average price of all Bitcoin. It is calculated as the ratio between Investor Limit and Active Supply, crucial for analyzing market trends and investor behavior.
The AVIV Ratio complements the TMMP by evaluating the relationship between active market valuation and realized valuation, highlighting significant discrepancies that may indicate investment opportunities or risks. This metric is especially useful for accurately understanding investor sentiment and market dynamics.
The AVIV Ratio stands out by excluding miners' profit realizations, focusing solely on investors' profits. This makes it a robust tool for analysts and investors looking to anticipate price trends and understand market behavior.