Bitcoin Fundamental Analysis 🚨
1. Last week I covered the Realized Profit by Age, this metric helped us visualize the different profit taking actions from certain market participants based on the time they've held. With this, we could identify moments that led to local tops and local lows throughout the bear market.
2. This week I am covering the MVRV 1w/1m delta, provided to us by Glassnode. This is an interesting metric since it uses the MVRV, which we've covered plenty before, and uses a delta (difference) between the 1 week signal and the 1 month signal, which gives us a nice band that the chart above covers.
3. The new signal formed by that delta is the orange line, but we are focused on it falling between 0.9 and 1. This area has shown historical significance within recent times and other moments in the chart.
4. A few that we can notice as of the recent months were the dips in our uptrend. These dips finished when this signal reached the bottom of that 0.9-1 channel.
5. In other moments, really oversold areas saw the signal exit the band, showing strong bottoms.
6. This metric may be useful in the future to identify oversold areas. The same statement above were true for local tops and highs.
