Realized Supply Density（±5%）

Realized Supply Density (±5%) is used to track the number of BTC whose price at the last move was within ±5% of the current price as a percentage of the total BTC circulation.

This indicator can reflect how many chips are bought at prices near the current price.

Set the SMA parameter to 7 and observe:

When the chip density reaches the recent peak, it indicates that the market will usher in drastic fluctuations. This is a very valuable volatility warning indicator. The reason is that when the purchase price of BTC is overly concentrated near the current price, a fluctuation in the current price will immediately cause a huge amount of floating profit/loss of chips, which is more likely to cause emotional greed/fear, and the floating profit selling orders will decrease/the floating loss selling orders will increase, which makes it easier to push the price to continue to change drastically in the same direction.