The chart is interpreted based on Bitcoin's current price, which provides the unrealized profit ratio for different categories of whale balances.
Tracking the unrealized profit ratio offers valuable insights into how overheated the market might be.
If we compare to what happened in March, the unrealized profit ratio almost reached 2 before declining as whales began to take profits and Bitcoin's price started to fall.
With the unrealized profit ratio currently around 1.2 and Bitcoin priced near 100k, this indicates that there may still be room for the bullish trend to continue in the short term. This is supported by whales’ willingness to hold their positions, aiming to increase their profits.
Written by Darkfost
