Percent Supply in Loss

Percent Supply in Loss tracks the percentage of BTC in circulation that is in a loss state, defined as the price at the last move was higher than the current price.

Set the SMA parameter to 0 and observe:

When the indicator rises near the highest point of the previous cycle, it indicates that underwater holdings have approached an extreme level for the historical cycle, which often corresponds to the bottom range of the market.

Set the SMA parameter to 50 and observe:

When the indicator falls below 5% and diverges from the price trend, it means low-priced chips have fully changed hands, which often corresponds to the top range of the market.