【BTC Bull Top Indicator Development Series】

When calculating the average price (Realized Price) of all BTC on the chain, the usual practice is to use "Total Cost Market Value (Realized Cap)" divided by "Circulating Supply".

Later, I regarded the BTC on the chain that had not been moved for >7 years as long-term dormancy or loss and removed it from the calculation to eliminate the increasingly severe drag of ancient chips, that is, the denominator became "Circulating Supply - >7y Supply", which is also my common template.

In addition to the above methods, are there any new design ideas for Realized Price?

If the total cost market value is evenly divided by all BTC with good liquidity (Liquid Supply) on the chain, then the purchase cost borne by each BTC will become the limit of the price increase (as shown in the figure).

That is, when the price of the currency rises to the point where the total cost + profit of only BTC with good liquidity can be equal to the total cost market value of all BTC on the chain at this moment, that is, the profit of BTC with good liquidity is equal to the cost of BTC with non-circulating liquidity, the market will reach the limit of increase.

There may be a deeper logic in this, and it can be used as a reference indicator for the bull market at the moment 😺 (as shown in the figure).